Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, and how he/she invests it (turn it into more).
Confused about the difference between the Arbitrage Pricing Theory and the Capital Asset Pricing Model? One excellent solution for finance terms is the Hypertextual Finance Glossary, developed by Duke business professor Campbell R. Harvey. With more than 8,000 entries, the Hypertextual Finance Glossary is a comprehensive collection to terms related to finance and investment.
The Street.com's Financial, Investing, and Stock Glossary has fewer entries than the Hypertextual Finance Glossary but the definitions are generally more detailed.