Financial Literacy and Economic Development

The purpose of this study is to discuss the concept of financial literacy as a vehicle for economic development in Nigeria. Individuals must have adequate knowledge of finance in order to work well in the field of economic decision making. Financial literacy is not a luxury nor a question of convenience. Rather, it has evolved into an essential tool for survival in today's market. This is owing to the fact that a lack or low level of financial understanding may lead to the selection and implementation of poor financial decisions, which may be harmful to individuals as well as the entire community. Against this backdrop, this article contends that financial institutions' promotion of financial literacy has a favourable impact on users of financial products and services. The research finds that financial literacy promotes financial access and saves, which in turn boosts economic growth, lowers poverty, improves livelihoods, and contributes to overall economic development.