"Financial literacy." A phrase with a shine to it, glinting like a gold coin in the age of digital currencies. You see it decorating social media posts, or sitting at the top of hashtags for social initiatives. But let's be truthful. Is opening your eyes to what the phrase means enough to turn you into a financial giant walking effortlessly toward financial freedom?

Personally, I wish the answer were yes.

In reality it is more like a journey through the desert. You don't arrive unless you have a map and some knowledge.

So let's start drawing your map. Here are the most important financial concepts that belong in your toolkit as you take on the adventure of financial independence. This article is updated continuously.

Financial literacy: knowing what you do with your money, rather than your money knowing what it does with you

Financial literacy means holding the skills and knowledge to make intelligent financial decisions. Not only buying what you need or want, but thinking about expenses, planning, and assessing financial risks and opportunities in order to reach your goals in the near and the long term.

Financial freedom: waking up in the morning knowing your salary is not your chain

A state of financial independence and stability you arrive at, where you can cover your needs and make financial decisions freely, without the pressure of debt or the negative consequences of those decisions, resting on stable financial resources, and investing intelligently to reach real independence.

Opportunity cost: everything you lose when you choose something else

The value or benefit an individual forfeits when making a particular financial decision from a set of available options. The cost of buying a new phone, for example, is not only the cash price of the phone, it includes the benefits you could have had if the money had gone somewhere else, such as clearing debt.

Expense tracking: the art of seeing where your money is going before it suddenly vanishes

Record everything you spend. The daily coffee? The delivery order? All small details that make a large difference by month end. It is the process of monitoring and recording all your daily and monthly spending, reviewing it periodically, in order to understand your spending pattern and improve future financial decisions.

Personal financial management: governing your pocket, rather than being governed by it

This concept revolves around planning, from building a simple budget and managing debt to investing wisely in order to hit short and long-term financial goals. Every step brings you closer to your goals, however small.

Savings and emergency fund: your only friend in a crisis

You always need a fallback plan. A savings fund is an amount of money allocated regularly for use in unexpected financial emergencies, such as losing a job or urgent medical costs.

Saving: a small amount consistently beats a large amount occasionally

Allocating a part of your monthly income to saving before you start spending, regularly, in order to reach specific financial goals or prepare for emergencies.

Debt: a bad friend if you are not paying attention

Debt means spending money you do not yet own to meet current needs or wants. And it always ends up costing more than expected.

Budget: a battle plan against financial chaos

A financial planning tool for distributing your income between needs and wants. And don't forget investing and saving, so you get the greatest possible benefit from the income available.

Investing: the patience game that rewards the prepared

Allocating a share of income with the aim of growing it and increasing its value to reach long-term financial goals. Every amount you invest today is a seed that grows over time into an ample harvest.

Financial planning: the map that guides you through the forest of decisions

Set goals, plan for them, and be ready to change your strategy if the situation calls for it. It is a strategic process aimed at setting long-term financial goals and managing them toward achievement in a sustainable way.

If you want to know which of these concepts your own behavior is weakest against before you start applying them, the KYS assessment maps you across spending, planning, and risk in 22 questions.