KEY COMPONENTS OF FINANCIAL LITERACY  

Although financial literacy consists of several financial components and skills that allow an individual to gain knowledge regarding the effective management of money and debt, the literature defines five fundamental components of financial literacy that should be learned. These are earning, budgeting (spending), saving and investing, borrowing, and protecting. Some other authors add two more which are taxation and personal financial management. Achieving in-depth knowledge of these financial components is important to increase individuals’ financial literacy.