**Answer:**Character education and cultural literacy play a crucial role in shaping young people in the era of globalization. Character education strengthens moral values such as integrity, empathy, honesty, and responsibility, serving as an inner compass that guides youth in facing negative influences and making wise decisions. Meanwhile, cultural literacy helps preserve national identity by deepening their understanding of history, traditions, language, arts, and local values. This provides young people with a strong cultural foundation and the confidence to engage globally without losing their identity.Both aspects also develop critical, flexible, and adaptive thinking skills needed to navigate rapid social and technological changes. In addition, character education and cultural literacy nurture tolerance, empathy, and appreciation for diversity, which strengthens social cohesion in multicultural societies. In the digital age, they promote responsible use of technology, helping youth filter information, recognize cultural biases, and create culturally sensitive digital content.Ultimately, the combination of strong character and deep cultural understanding enhances global competitiveness. Young people can merge local wisdom with modern innovation, contribute unique perspectives in international settings, and promote their culture as a form of soft power.**In conclusion**, character education provides the moral and personal foundation, while cultural literacy builds identity and social awareness. Together, they shape a generation that is academically capable, morally grounded, culturally rooted, globally aware, and adaptable to rapid change.