Financial literacy is the ability to understand and effectively manage your financial resources. It involves knowledge of budgeting, saving, investing, and making informed financial decisions to achieve your goals.

Improving money management skills involves creating a budget, tracking expenses, setting financial goals, and educating yourself about personal finance. Utilize tools like apps or spreadsheets to monitor your spending and savings, and consider consulting financial advisors for personalized advice.

Effective budgeting strategies include the 50/30/20 rule, where 50% of your income goes to needs, 30% to wants, and 20% to savings. Additionally, using zero-based budgeting can help ensure every dollar is allocated, and regularly reviewing your budget can help you stay on track and adjust as necessary.

Saving money provides financial security, helps you prepare for emergencies, and allows you to invest in future opportunities. It can also reduce stress related to financial uncertainty and enable you to achieve long-term goals like buying a home or retirement planning.

Starting to invest with little money is possible through options like robo-advisors, which require low minimum investments, or by purchasing fractional shares of stocks. Additionally, consider investing in low-cost index funds or ETFs, and take advantage of employer-sponsored retirement plans that may offer matching contributions.