Financial literacy is a crucial skill that empowers individuals to make informed and effective decisions regarding their financial resources. It encompasses understanding various financial concepts, such as budgeting, saving, investing, and
managing debt. In a world where financial decisions can have significant long-term implications, being financially literate is essential for achieving personal and financial goals. One of the key components of financial literacy is budgeting, which involves creating a plan for how to allocate income towards expenses, savings, and debts. Developing a budget helps individuals to track their spending habits, identify unnecessary expenses, and ultimately gain control over their finances. A well-structured budget not only facilitates better financial decision-making but also fosters a sense of accountability and discipline in managing money.