Personal financial literacy will help individuals to make informed decisions on personal money management, such as budgets, debts, savings, and investments that can reduce financial strains and gain economic stability. 

Financial illiteracy can be a cause for financial burdens related to high debt, lack of preparedness for an unexpected financial emergency, and poor spending decisions. Most lack financial literacy which causes great concern as 75% of the population are living paycheck to paycheck, with the majority of that income going to debt.