What is financial illiteracy? Financial illiteracy is the inability to effectively manage ones finances, and make good decisions to maintain one’s financial well being and success

Financial illiteracy The ignorance of the terms on a mortgage, and the inability to pay it, will result in foreclosure As you can see, over time, foreclosures become more common. This is a result of the financial illiteracy of younger people.

Divorce As a result of the financial stress caused by an inability to handle money, marriages also suffer. Notice how the rates raise over time as financial illiteracy becomes more widespread here as well.