Financial wisdom refers to the ability to make informed and effective decisions regarding money management. It involves understanding key concepts such as budgeting, saving, investing, and debt management. By applying financial wisdom, individuals can create a stable financial future, avoid unnecessary debt, and build wealth over time. Practicing financial wisdom also includes setting clear financial goals and regularly reviewing one's financial situation. This can involve using tools like financial planning software or consulting with a financial advisor. Ultimately, financial wisdom empowers individuals to navigate their financial lives with confidence and security.