 What is financial literacy and why is it important? Financial literacy is all about making good financial decisions and is one of the most important life skills. Without this skill it would be very difficult to be on the path to financial success. Let me tell you why it is important. Budgeting, you gotta think about how you spend and how much you spend so you're ready for the future. Investing, knowing how to make a good investment helps to make smarter decisions that will help support the future generation. Debt management. If you're already in debt, managing your expenses will help take you out and free you from this debt. Retirement, you're gonna know just how much to save and just how to get there. Improving your financial literacy and sharing that knowledge with your family is good for your financial and mental health and it helps you get where you want to be.