Financial Literacy – Why it Matters
A guest blog post by Monica Murray._f200x150_1328137159.jpg)
Did you know that November was Financial Literacy Month? It seems everyone is getting on the ‘bandwagon’ of financial literacy. Don’t get me wrong, as a CA I am all for it – but what does it really mean? The Wikipedia definition says that financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allow an individual to make informed and effective decisions through their understanding of finances.
The truly great decisions are always informed ones. However, many decisions are rooted in emotion and others are made in haste (sometimes both). When it comes to the BIG decisions, we hope they are made with the best possible information by people with the ability to interpret that information.
Which brings me to boards. Boards of Directors are the people who are trusted to ensure their organization is performing at its best. People selected to be on boards are leaders in their industry, sector, and community. They are well-seasoned, educated, and engaged individuals who commit their time and expertise to organizations in need of their skill sets. This is where financial literacy matters. With all the changes to reporting standards and the increasingly complex world we live in, it makes good business sense to ensure that lifelong learning is a part of the board experience.
Stay tuned for Financial Literacy for Boards – an initiative by WATSON to help businesses perform better.