3 levels of financial literacy

Test your financial literacy. From this small note, you will find out at what level you are now, and what you still have to go through.

0 level. "No money". This is a pre-level, meaning complete financial illiteracy. People at this level cannot earn as much money as they would need to live. As a rule, they have debts, and often quite substantial ones.

1 level. Earnings. This is the beginning level of financial literacy. People at this level are able to earn the money needed to pay for current needs. At the same time, they spend everything they earn and do not have any financial assets. In the event of force majeure expenses or the need to make a large purchase, such people are forced to take out a loan.

2nd level. Preservation. People who are at this level are able not only to earn, but also to keep part of their earnings after paying current expenses. This is already a fairly good level of financial literacy: people on it have financial assets (reserves, savings), they are able to pay for force majeure expenses and make large purchases through savings. Their financial condition can be called stable.

3rd level. Multiplication. This is the highest level of financial literacy, which no more than 1% of the population can achieve. People who are at this level are able not only to earn and save, but also to increase their personal finances, turning them into capital. Their earnings are constantly growing, and incomes are mostly passive. These people eventually achieve financial independence.