What is a financial literacy program designed to do?

A financial literacy program is designed to enhance individuals' understanding of important financial concepts. This includes teaching fundamental skills such as budgeting, saving, investing, and managing debt. The goal is to empower people with the knowledge and tools necessary to make informed financial decisions, thereby promoting sound financial behavior that can lead to greater economic stability and success.

Understanding financial concepts is crucial for making responsible choices about money, which helps individuals plan for their future, prepare for emergencies, and achieve long-term financial goals. By acquiring this knowledge, participants are better equipped to navigate the complexities of personal finance and avoid pitfalls that can arise from misunderstandings or lack of knowledge.

The other options do not align with the primary goal of a financial literacy program. Providing personal loans is a financial service rather than an educational initiative. Teaching avoidance of taxes or encouraging reckless spending would contradict the principles of financial literacy, which emphasize responsible management and ethical financial practices.