This is particularly true in developing countries, where education on personal finance is often minimal or absent from school curriculums. In contrast, countries that prioritize financial education tend to have populations with higher savings rates, lower debt burdens, and more resilience during economic downturns. Another critical area affected by financial literacy is debt management. With the easy availability of credit cards, personal loans, and buy-now-pay-later schemes, Finance blog many consumers fall into the trap of over-borrowing. They often overlook the implications of compound interest, late payment penalties, or the long-term impact of a poor credit score. Financial literacy equips individuals to differentiate between good debt (such as education or home loans) and bad debt (high-interest consumer loans), enabling smarter borrowing decisions.