Why is financial-literacy so important?
Sir Richard Branson, despite his many companies, did not know the difference gross and nett until he was 50, if you believe his interview at TED.
Some years ago, a simple financial-literacy test was given to directors of various Fortune 500 companies. They got an average of 32% of the questions right.
Why is financial-literacy so important?
According to Financial Intelligence: A Manager’s Guide to Knowing what the Numbers Really Mean, published by the Harvard Business School Press, there are at least 3 benefits to an individual:
- increased ability to critically evaluate your company
- better understanding of the bias in the numbers
- the ability to use numbers and financial tools to make and analyze decisions
now, if the words scare or bore you, you’re probably like me and might have described yourself in the past as “not a numbers person”. well, the good news is that the book is damm good, short and well-written. And i shall attempt to write a summary of what i have learnt over the next couple of posts.
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