What can financial education teach consumers about debt?

Financial education plays a crucial role in teaching consumers how to manage their debt responsibly, which is why the choice reflecting this is the correct answer. Managing debt responsibly involves understanding the types of debt, the costs associated with borrowing, and strategies for repayment. This knowledge empowers consumers to make informed decisions, such as budgeting for loan repayments, avoiding high-interest loans, and recognizing the importance of maintaining a healthy credit score.

The concept of responsible debt management also encourages consumers to differentiate between good debt, which can lead to investment opportunities or asset building, and bad debt, which can lead to financial burden when not handled properly. By fostering an understanding of debt dynamics, financial education enables individuals to utilize borrowing as a tool for financial growth rather than a source of financial instability.