What key component of financial literacy is assessed in KOSSA?

Understanding budgeting is a crucial aspect of financial literacy, as it involves the ability to plan and monitor personal finances effectively. Budgeting enables individuals to track their income and expenses, helping them prioritize spending, save for future goals, and avoid debt. Additionally, a solid grasp of budgeting lays the groundwork for making informed financial decisions about larger components, such as investments or loan acquisition, as it provides clarity on available resources. This foundational knowledge ensures that individuals can allocate funds efficiently and make sound financial choices in various scenarios. By assessing this component, KOSSA emphasizes the importance of budgeting skills in achieving overall financial well-being.