Financial literacy isn’t just about knowing how to budget, though that’s a huge part of it. It’s about understanding how money works, avoiding costly mistakes (like high-interest loans or overspending), and making smarter decisions in the long run. Being financially literate helps you:

• Build wealth through smart investments and risk management.

• Plan for the future with a solid retirement strategy.

• Navigate economic changes like inflation, interest rates, and market trends.

In short, financial literacy empowers you to take control of your financial future. Since you’re already here, chances are you understand its value. So, without further ado, let’s talk about how AI can help you achieve your goals.

AI is making waves in almost every area of life – and financial literacy is no exception. With AI-powered tools, you can get personalised, on-demand help that makes learning about money easier and more engaging.

It adapts to your learning style

Some people need a thorough, long, and descriptive explanation to truly understand. Others need concepts to be explained in a few words. And then there are those who need real-life examples and very simple explanations.

If you use AI language models, you can get any term explained in any way that’s the easiest for you to understand. It’s not a generic textbook that has dry and strict definitions – it’s your personal teacher who adapts to your learning style.

Ashamed to ask “stupid” questions? AI doesn’t judge

Even if you don’t understand the answer right away, you can ask follow-up questions as much as you want. There are no “stupid” questions for AI – asking questions is, in fact, a great way to learn, and understand the information from different angles! AI won’t get impatient or judgemental with you (because it’s unable to), so you can relax and ask away! It’s all a part of the learning process.

The financial terms won’t be a foreign language anymore

The term “liquidity” has nothing to do with liquids when it comes to the finance talk. And what exactly does “annuities” mean?

We know that it sounds confusing, but it only sounds this way. If you ask a tool like ChatGPT to explain in simple terms what liquidity means in finance, you’ll find out that it refers to how quickly and easily an asset can be turned into cash without losing value. As for annuities, you’ll learn that an annuity is a financial plan where you pay a lump sum of money upfront and in return, you receive regular payments over time.

Still too vague? Ask follow-up questions and for simple real-life examples, and you’ll be surprised at how quickly things click.

To get the most out of AI, it’s helpful to know where you stand and what you want to achieve. Are you looking to:

• Create a budget?

• Save more effectively?

• Understand debt management?

Once you know your financial goals, you can use AI to explore concepts, clarify terms, and get advice tailored to your needs. While AI can be a great tool for learning about finance, remember that investing advice is best left to professionals, as the financial landscape is unpredictable.

And if you already have a good financial understanding, you can always build on that knowledge with the help of AI.

• ChatGPT helps you understand complex financial terms and answers your money questions anytime, like having a financial assistant available 24/7, ready to explain things in simple terms at your own pace.

• Gemini is an AI chatbot that helps with budgeting, saving, and getting a clearer picture of your finances. It offers personalized tips, tracks your spending, and provides insights based on your habits, making it easier to manage your money.

• Cleo is another chatbot that focuses on helping you budget, save, and track your spending. It gives friendly, easy-to-understand advice to help you improve your finances in a way that doesn’t feel overwhelming.

Each of these tools makes managing your money simpler and more personalised, so you can feel more in control of your finances.

While AI is a powerful tool, it’s important to use it wisely. Remember:

• AI isn’t a replacement for your critical thinking. It’s a guide, not a decision-maker. Always apply your own judgment, especially in complex financial situations.

• Double-check your sources. Even AI can sometimes get things wrong. Always verify that the information you’re getting is up-to-date and accurate.

• Protect your privacy. Be mindful of the data you share with AI tools. Avoid inputting sensitive information like bank account numbers or passwords.