Investopedia defines financial literacy as the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. One of the cornerstones of financial management is saving. It is important to allocate a portion of earnings to savings, both for retirement and unforeseen financial emergencies. Another cornerstone involves the protection of your assets. Protection means making sure that your assets are owned properly and that you have the appropriate legal documents in place. I encourage all family members when they reach age 18 to create a health care proxy/declaration (for medical decisions) and a power of attorney (for financial matters). I also strongly suggest that if they have earned income, they should consider funding a Roth IRA.
For me, financial literacy means taking responsibility for your assets and protecting these assets for the ones you support.