Financial resilience ensures that risks are manageable and do not threaten individual wellbeing or societal welfare. If an adverse shock hits, financial structures and systems should be sufficiently robust to buffer the shock and provide insurance against adverse events. Micro- versus Macro-Perspectives Yet the perspective taken by financial literacy and financial stability differs. Financial literacy is a concept related to the individual.
It denotes appropriate skills and knowledge that enable individuals to make sound financial decisions. Lusardi and Mitchell (2011a, 2011b) developed three questions measuring fundamental concepts measuring fundamental concepts necessary to financial decision making, related to interest rates, inflation and the benefits of investment diversification.