Which statement describes financial literacy?

• A. Making informed decisions about financial resources to prepare for a secure future
• B. Ability to locate information
• C. Ability to gather and organize data
• D. Ability to use tech tools to communicate

Answer: (A)

Financial literacy is about understanding money and using that understanding to manage resources wisely. The statement that fits best focuses on making informed decisions about financial resources to prepare for a secure future, because it ties knowledge about money directly to choices that affect long-term financial security. Locating information, gathering and organizing data, and using tech tools to communicate are valuable skills, but they describe information literacy and digital skills, not money management. The key idea of financial literacy is applying money knowledge to budgeting, saving, and evaluating options that build financial stability.