Financial Literacy and Accounting – A Necessary Combination

Keywords – Financial Literacy 

The education system is frequently bashed for not equipping people with the ‘needed’ skills.

The so called needed skills generally include the ability to balance the books, comprehend taxes, and make decisions with collecting and spending wealth. In short, the bashing is generally around financial literacy.

However, we will not be making a case for the education system to be changed here. Our aim is to highlight the value of attaining financial literacy at a general populous level.

Financial Literacy

So, what exactly is financial literacy?

Financial literacy is the necessary education that helps individuals and organisations understand and develop their ability to generate, invest, spend, and save money.

Sadly, most people lack even a basic understanding of financial systems and resources. And, as a result, a large proportion of people struggle to keep a healthy check of their financial situation. For instance, according to CNBC, 65% of US citizens struggle with managing their finances.

Importance of Financial Literacy

Financial literacy is your key to financial stability.

The ability to budget, track spending, pay off debt, and future proofing all derive from financial literacy. 

In short, financial literacy is your route to understanding how money works, granting an ability to face any financial challenges. 

Therefore, a whole field around the topic of financial literacy exists within accounting and beyond.

Financial Literacy as a Field

Beyond a basic understanding, the field of financial literacy also covers the attitudes and behaviours of individuals and organisations towards money. 

In short, the field covers all socioeconomic levels, from lending to mortgages, and from interest rates to credit scores. 

Therefore, it is important to equip yourself with the necessary, basic accounting skills and applying them to your day to day life.

In addition, you can also pursue professional help, in the form of financial advice from an expert. 

To learn more, get in touch with us today. 

Meanwhile, have a look at our financial and business consulting advice here and here respectively.

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