FDIC AIDT Ready-To-Work (RTW) 2025 – Free Money Smart Practice Exam Questions and Study Guide

The primary goal of financial literacy is to promote understanding and effective management of financial resources. This involves equipping individuals with the knowledge and skills necessary to make informed decisions about their finances, including budgeting, saving, investing, and understanding financial products. By fostering financial literacy, individuals can improve their ability to manage their money wisely, plan for the future, and achieve their financial goals.

In contrast, encouraging impulsive spending, discouraging saving and investing, or reducing knowledge about financial products does not align with the principles of financial literacy. These actions would negatively impact an individual’s financial health and decision-making capabilities, highlighting the importance of building a foundational understanding of financial concepts and practices. Therefore, promoting effective management of financial resources is essential for building a financially secure future.