What is Financial Literacy?

The world of commerce is a dynamic environment, full of multiple types of investments and transactions. However, without a solid foundation in the basics of finance it can be easy to get quite lost and overwhelmed! The solution to this problem is financial literacy.

Financial literacy refers to the skills and knowledge required to make effective and efficient decisions with financial resources. Some of these may include:

• Accounting
• Asset management
• Financial Reporting
• Pricing
• Financial Analysis
• Cash flow management

Recently, financial knowledge has become more important than ever. The global population has shown a declining trend in financial literacy, which is having a negative effect on individuals and organisations alike. Lack of financial literacy can be associated with several personal finance issues, such as tax problems and poor money management. In the business world, insufficient financial training can slow productivity and prevent organisations from operating efficiently. In fact, many business failures and bankruptcies over the past few years can be attributed to poor financial decisions. The Solution Financial literacy depends on the proper education and training. In same cases, this may mean “un-learning” what you have previously been taught. It is essential to establish a solid foundation based on sound financial understanding and core principles of money. In our experience, the best way to do this is through a multi-tiered approach. First, learn the fundamentals of finance and then you can reinforce this knowledge through real business accounting scenarios. Using real case studies, you gain a deeper understanding of financial problems and their solutions. Colour Accounting™ is new to the UK and taking it by storm. Join us for our Free Breakfast Launch 16th April, Central London. We have released the first ever UK Public Workshop dates click here to confirm your seat. ]]>