Culture is the widening of the mind and of the spirit” - Jawaharlal Nehru

Cultural Literacy, just as culture can be defined in many different words or ways.  The main idea of cultural literacy is to have an understanding and appreciation for other cultures.  This can include culture from areas near or far from where you live.  This requires a person not to just look at someone who has different ideas, beliefs, values, traditions and materials (possessions) but to understanding them.  It is not enough to just know someone has a different religion for example, but to know what that religion stands for and practices and to appreciate and respect those differences.  Cultural literacy is also not just looking at differences but similarities between cultures as well.  Many times, we get so caught up in looking at the differences between cultures that we forget to connect ways in which they are similar to each other as well.  Another important part to remember is that culture evolves and changes over time. Understanding the history of someone's culture comes with knowing the past of where they come from as well as where their culture is at today.  Culture is something that is learned, not something that someone just wakes up with one day.  To have cultural literacy is to look as aspects of culture that involve the past and present for a person.
Bottom line: To have culture is to recognize the aspects of language to habits you carry, to have cultural literacy is to be able to look at your own culture as well as others with understanding, tolerance and acceptance to move forward as a society.