Correlation of Financial Literacy to a Person's Lifestyle

[Suba]

While there is no 100% guarantee that someone with high financial literacy can control their spending and ensure they can live frugally, financial behavior or consumer behavior is not only influenced by high financial literacy but also by mindset, lifestyle, and other psychological factors. However, financial literacy is also a foundation for understanding, differentiating, and prioritizing needs over mere wants. It will also significantly assist in managing finances wisely.

Therefore, financial literacy can be positively and significantly correlated with money management. Individuals with high financial literacy tend to be able to control their finances, while those with low financial literacy often tend to lead a hedonistic lifestyle.

 

[magnus2022]

Your observation is actually right. Extreme poverty is mostly caused by financial illiteracy! I have observed some poor people, their approach and lifestyle usually constitute serious problem to their financial growth.

 

[Trush Jodie]

When a person understands financial intelligence, they would be able to maintain a lifestyle that is within their means financially.

 

[Nomad]

Just because you are financially literate does not mean you will have a stable finances. if you aren't earning enough you will always be in trouble

 

[Augusta]

Definitely, those with higher financial literacy tend to save more consistently and make smarter investments decisions.

 

[Kera]

Some of the lifestyle that I lived when I didn't have financial literacy, I can't live it now that I am financially literate.