Definition of Financial Literacy

Behavior

Observable actions and reactions that can be measured and studied. Behavior includes everything from simple reflexes to complex social interactions, providing the foundation for psychological research and analysis.

Emotion

Complex psychological states involving subjective experience, physiological response, and behavioral expression. Emotions influence perception, memory, and decision – making, playing a central role in human experience and social interaction.

Cognition

Mental processes involving thinking, knowing, remembering, and problem – solving. Cognition encompasses attention, perception, memory, language, reasoning, and decision – making —the internal operations that guide behavior.

Motivation

The driving forces that initiate, direct, and sustain behavior toward goals. Motivation explains why we do what we do, encompassing biological needs, psychological desires, and social aspirations that energize our actions.

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