Financial Literacy for Financial Well-Being and Economic Security
DOI:
https://doi.org/10.63208/21013-825Keywords:
Financial Capability, Financial Education, Financial Literacy, Financial Well-Being, Personal FinanceAbstract
Financial literacy has become increasingly important as individuals face more complex financial decisions and greater responsibility for managing personal finances. This study examines the role of financial literacy in promoting financial well-being and economic security through a qualitative Systematic Literature Review (SLR) Relevant studies published over the last five years were collected from major academic databases and analyzed using thematic synthesis. The findings indicate that financial literacy improves financial decision-making, supports responsible financial behavior, and enhances financial well-being. The review also reveals that financial literacy strengthens economic security by improving financial resilience, saving behavior, and debt management practices. Furthermore, digital financial literacy has emerged as an important component of financial capability in modern financial environments. Financial knowledge plays a central role in helping individuals understand financial products, manage personal finance, and make informed choices regarding saving, borrowing, investment, and expenditure. Financial education also contributes to the development of financial capability by strengthening individuals' understanding and practical skills in managing financial resources. The study further highlights that improved financial capability can support individuals in responding to financial uncertainty, managing economic risks, and achieving greater financial well-being over the long term.
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