Running head: FINANCIAL LITERACY 1

Financial Literacy

Student’s Name

Institution’s Name

Tutor’s Name

Date
FINANCIAL LITERACY 2

Financial Literacy

Financial Literacy can be described as the confident understanding of economic concepts

that include but are not limited to investing, saving, and debt management which mainly results

in an overall state of financial stability and self-trust. Gaining financial Literacy begins by

gaining basic knowledge on matters that have to do with finances (McGurran, 2021). Based on

the simple criteria I provided in the description borrowed above, I'd say that I still have a long

way to go on matters to do with financial Literacy. I'd say that I've done a pretty good job in debt

management, but I still have a long way to go in investing and saving. Based on the statements I

got incorrect, I still need to gather knowledge on matters that have to do with saving and

investing.

The knowledge of investing entails a wide range of skills that range from finance and

economics to research and analytical skills. Investors need finance and economic skills as it

helps them in making investment decisions by helping them in valuing assets and securities and

identifying risks. Investors also need research and analytical skills, which allows them to monitor

the economic factors that affect the fields they are interested in and the daily patterns that

significantly affect financial and securities markets. Saving knowledge entails a variety of

factors. One of the critical factors in understanding how your savings can grow is your financial

habits that generally affect your savings (Beattie, 2019). Understanding these habits also helps

understand what is harmful to your investing and debt management measures.

During an interview, to demonstrate that I have financial Literacy, I would use the STAR

method to respond to questions touching on financial Literacy. This method entails four

components: Situation, Task, Action, and Results. Using this method, I would begin by setting a

scene in which I was entrusted with employing financial knowledge to solve a problem; I would
FINANCIAL LITERACY 3

vividly describe the job and the actions that I took to accomplish the task. Then I would explain

some of the results that I got. The task, of course, has to require financial knowledge, and the

actions have to be based on economic competence. The results have to be positive, and they have

to demonstrate my financial Literacy.

FINANCIAL LITERACY 4

References

Beattie, A. (2019, September 27). 5 Skills That Traders Need. Retrieved from Investopedia:

https://www.investopedia.com/articles/investing/091714/5-skills-traders-need.asp

McGurran, B. (2021, June 8). What Is Financial Literacy and Why is it Important? Retrieved

from Experian: https://www.experian.com/blogs/ask-experian/what-is-financial-literacy-and-

why-is-it-important/