Which of the following is a benefit of being financially literate?

Being financially literate equips individuals with the knowledge and skills necessary to manage their finances effectively. This includes understanding various financial concepts, such as budgeting, saving, investing, and the implications of debt. The ability to make informed decisions regarding budgeting is a significant benefit because it allows individuals to allocate their resources more effectively, plan for future expenses, and set financial goals.

When people are financially literate, they can create and stick to budgets that align with their income and expenses, leading to better financial stability and security. This informed decision-making process can help prevent overspending, reduce the likelihood of debt accumulation, and enhance overall financial well-being. Moreover, being well-versed in financial matters empowers individuals to adapt to changing financial circumstances and make proactive choices that positively impact their financial future.