Literacy is being able to read and write. Countries talk about a literacy rate: how many people can do this. Someone with no literacy is illiterate.

Literacy 識字能力 is being able to read and write 就是能讀能寫。Countries 各國 talk about a literacy rate 會談識字率: how many people can do this 也就是有多少人做得到這件事。Someone with no literacy 沒有識字能力的人 is illiterate 就是文盲

Though actually, people now stretch the word a long way. Computer literacy means you can use a computer well enough; media literacy means you can judge news and posts; financial literacy means you understand money. In those uses it no longer means letters on a page; it means “enough skill to get by in that world.” The core school meaning is still reading and writing.

Though actually 不過其實, people now stretch the word a long way 現在大家把這個詞延伸得很遠。Computer literacy 電腦素養 means you can use a computer well enough 意思是你會用電腦、用得夠好; media literacy 媒體素養 means you can judge news and posts 意思是你能判斷新聞跟貼文; financial literacy 財務素養 means you understand money 意思是你懂錢的事。In those uses 在這些用法裡 it no longer means letters on a page 它已經不是指紙上的文字了; it means "enough skill to get by in that world." 而是「在那個領域裡足以應付的能力」。The core school meaning 核心的、學校裡的意思 is still reading and writing 仍然是讀寫能力

It is a serious, slightly formal noun: governments, teachers, and reports use it more than friends chatting.

It is a serious, slightly formal noun 這是個嚴肅、有點正式的名詞: governments, teachers, and reports 政府、老師和報告 use it more than friends chatting 用它的頻率比朋友聊天用得多