What is defined as the knowledge and skillset required to manage finances effectively?

The knowledge and skillset required to manage finances effectively is best defined as financial literacy. This concept encompasses a variety of competencies that enable individuals to understand and utilize financial information, make informed decisions about savings, budgeting, investing, and understanding debt. Being financially literate allows people to navigate the complexities of money management, formulate effective financial plans, and evaluate financial products or services critically.

In contrast, investment management refers specifically to the process of managing an individual's or institution's investments and may not cover all aspects of personal finance. Consumer protection focuses on laws and regulations in place to safeguard consumers in financial transactions but does not address the educational aspect of managing finances effectively. Debt awareness is a component of financial literacy that deals specifically with understanding one's debts and repayment obligations, but it does not encompass the entire scope of managing finances as financial literacy does.