It is crucial for people to gain financial literacy. The purpose for this is to aid the consumers to save enough that they can provide adequate income for retirement and at the same time avoid the high degrees of debt that might result to foreclosures and bankruptcy.

A certain study showed that those with very good financial literacy plan for their retirement have doubled their wealth compared to those who have low financial literacy, who have less wealth and even end up paying fees that are unnecessary. This means that those who have lower financial literacy usually buy on credit and are unable to pay back the full balance every month.