Financial literacy is crucial for teenagers as it equips them with the knowledge and skills to make informed decisions about money management, budgeting, saving, and investing. By understanding the concepts of earning, spending, and saving, teenagers can develop responsible financial habits that will benefit them throughout their lives.

One example of the importance of financial literacy for teenagers is the ability to avoid debt traps. With proper financial education, teenagers can learn about the dangers of high-interest debt and how to manage their expenses within their means. This knowledge can help them avoid falling into debt cycles that can be difficult to escape.

Another example is the ability to make wise investment decisions. With an understanding of financial concepts, teenagers can learn about the power of compounding interest and the benefits of long-term investing. This knowledge can set them on the path to building wealth and securing their financial future.

References:

• According to a study by the National Endowment for Financial Education (NEFE), financially literate teenagers are more likely to save money and less likely to engage in risky financial behaviors.
• The Jump$tart Coalition for Personal Financial Literacy has also emphasized the positive impact of financial education on teenagers' financial behaviors and decision-making skills.

Overall, financial literacy empowers teenagers to make sound financial decisions, avoid common pitfalls, and work towards achieving their long-term financial goals.