How does Financial Literacy lead to Financial Freedom In India, especially, it is assumed that if a person is "literate," they automatically are financially literate. Unfortunately, that is not the case. Many adults who earn do not know how to spend their resources efficiently. It is essential to understand how to spend to maintain stability in the longer run. Financial literacy enables individuals to better their decision-making skills. Often we are told that debt is bad. However, it can be beneficial in some instances. If it can generate an asset that will yield high returns, it is beneficial. Financial literacy covers how to manage personal borrowings efficiently. Some loans like home loans and education loans can be considered good loans. Not paying credit card dues on time and taking loans to live a lifestyle that is not affordable are deemed to be bad loans. It also helps in reducing stress and anxiety caused by uncertainty. Financial planning is a necessary skill to