We’ve all heard about money, because it is something we use in our daily lives. This is why we must know how to use it and spend it wisely. We can use the term ‘finance’ to explain things that are related to money. For example, if someone struggles with having money, they are having financial issues. Then, we will come across the term ‘financial intelligence. Clearly, it means to be smart financially, but in what way? We see it every day, even without knowing. Children might have piggy banks, and that is actually related to financial intelligence. It shows that the owner of the piggy bank is saving up money, which is actually considered financial intelligence. At school, we might learn ways to save our money and later on, some of us will learn how to be an investor, which is also considered financial intelligence. Many people wonder, why is financial intelligence so important? There are many answers for this, but first, we must look at all the information surrounding this subject. From the multiple articles talking about how to be financially intelligent to all the people who specialize in this subject, there is actual proof that financial intelligence is absolutely necessary in our lives.
Everyone has to work someday, and having financial knowledge is proven to be necessary in businesses. For a business to be considered successful, the people who work there should get a good amount of salary. With financial knowledge, there is a greater chance of this happening since the stores know how to use their money wisely and how to make more profit. Financial knowledge is a critical aspect of life because it is needed in every single business. It is more influential than other types of knowledge because it’s necessary on one’s path to earn a salary to provide for themselves and/or for their family. To be successful, we need to know why balance sheet balances, and why profit vs cash is significant to learn, and we will know all of that if we have financial knowledge. According to studies, only 17% of companies who don’t have financial knowledge made it to the top 100 companies in their territory. Also, the main reason that organizations fail is that they didn’t learn how to deal with their money. I believe that in businesses, they wouldn’t be able to make as much profit if they didn’t have financial knowledge. This also applies to investors who don’t know how to use their money correctly. If this wasn’t taught, many businesses and organizations wouldn’t be the success they are today.
In life, we must all make decisions that could either turn out good, or bad; with financial knowledge, people’s decisions about business turn out to be better. What this means is that decisions are much more informed as well as calculated. One can only make better decisions if they have financial knowledge, because they will know what to and what not to spend their money on. According to researches, 74% of financial decisions are better after the people have financial knowledge. However, many people believe that financial knowledge is only used when it comes to money. This is actually not true, because the part about money will cause a chain reaction. What someone’s decision with their money turns out to be will impact their future careers, their education, and this eventually leads to them being able to afford a roof over their heads or not. It’s kind of a life or death situation. With financial knowledge, there are more chances of life than of death. Also, many companies that don’t have financial knowledge have a higher chance of ending up with tighter budgets, less salary, and less advanced equipment. In conclusion to this argument, financial knowledge is related to one’s decisions, which eventually creates a chain reaction.
Not only does financial knowledge help one with their life, it also helps them emotionally. By this, I mean that it can cut them a lot of slack. For one, they will be less stressed financially, which is actually proven to be better for their health. When one owes a debt, they will be financially stressed which eventually will make them less healthy. However, if they possess financial knowledge, the debt could have been avoided. Also, when an investor doesn’t know whether they should invest in a stock or not, they will obviously be stressed. A solution for this is to have financial knowledge, and then so much stress would be prevented from happening. This would also allow these people to clear their minds and make more ethical and wiser decisions financially. This would lead to them being able to know how to budget their incomes without having to stress or think too much about it since they already have financial knowledge. Apparently, more than 1000 stocks have increased thanks to financial knowledge. This way, they could live their life happily and without much stress about their debts and financial problems. Therefore, this would not only make their health better, but it would also allow them to make more financially stable and more ethical decisions.
Financial knowledge is something that we all need in life to make it better. Although not everyone thinks that it is important, it is necessary almost everywhere not only physically, but also mentally and emotionally. It is also needed in business and life, in general. Contrary to many beliefs, it is actually not useless, but it is actually a skill that is extremely underappreciated. Financial knowledge can be seen in many schools, because it is essential to know. Even when it is taught at school, we know that it must be learned. Imagine the world without it. Investors would be losing a lot of money, and way more people will owe debts. Stores wouldn’t make as much profit, and the workers wouldn’t receive as much salary. With all this in mind, without Financial Knowledge, the world wouldn’t be complete. Let’s take Apple as an example. Most of us have products from Apple, and it is one of the most popular stores in the world. Why? Because the CEO has Financial Knowledge and also teaches the workers to have them as well. Thanks to all this, they have way more profit and salary. That is only one of the many examples of how Financial Knowledge benefits the world. Having all of this in mind, I believe that Financial Knowledge should be essential in life.
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