Financial Intelligence.
Is it the same as Financial Literacy and Financial Management? How can people relate with this stuff?
Where does one learn Financial Education?
Let me give you an overview...
What is Financial Literacy?
Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances.
In Asia Pacific and Middle East Africa
A survey of women consumers across Asia Pacific Middle East Africa (APMEA) comprises basic money management, financial planning and investment. The top ten of APMEA Women MasterCard's Financial Literacy Index are: Thai 73.9, New Zealand 71.3, Australia 70.2, Vietnam 70.1, Singapore 69.4, Taiwan 68.7, Philippines 68.2, Hong Kong 68.0, Indonesia 66.5 and Malaysia 66.0.
Robert Kiyosaki's New Financial Advice
Meaning of Financial Management
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Scope/Elements
- Investment decisions includes investment in fixed assets
- Financial decisions
- Dividend decisions
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and control of financial resources of a concern.
The objectives can be:
- To ensure regular and adequate supply of funds to the concern.
- To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
- To ensure optimum funds utilization.
- To ensure safety on investment.
- To plan a sound capital structure.
Functions of Financial Management
- Estimation of capital requirements
- Determination of capital composition
- Choice of sources of funds
- Investment of funds
- Disposal of surplus
- Management of cash
- Financial controls
Conventional Education Vs. Financial Literacy
Here is a preview of an article about the trends in finance management of Filipinos.
Filipinos Taught Better Financial Management
By Ramona Ruiz
ABU DHABI // Filipino migrant leaders are teaching their compatriots how to manage their hard-earned money, invest their savings and prepare them to reintegrate into their communities back home....
The move follows a financial literacy "training of trainers" organised in Dubai by the Ministry of Labor, not only for Filipino migrants but for those from Bangladesh, India, Pakistan and Sri Lanka.
A series of workshops were held in January by representatives from Atikha, a non-governmental organisation that provides economic and social services to overseas Filipino workers (OFWs) and their families in the Philippines. Atikha also developed a training module that was applicable to other migrants.
The financial literacy seminars discussed basic concepts of saving, investing and borrowing and the various investment instruments that Filipinos could utilise.
"It is our nature to make sacrifices for the family," Mr Junio said. "We need to know how and when to say 'no' to some of their demands."
Just click the link to read the whole article.
For a review about the banks in the Philippines such as Bangko Sentral Ng Pilipinas, Banco De Oro, CitiBank Philippines, Bank Of The Philippine Islands, Union bank, Philippine National Bank, Metrobank, Security Bank, Land Bank Of The Philippines, HSBC Philippines and China Bank Philippines click here.
So where do we learn this Financial Stuff...
For me, I learned from a book. Then through videos and eventually through seminars. There are people that have knowledge and wisdom to share about Financial Literacy, Financial Management, basically finding Financial Education.
Robert Kiyosaki has been one of my Best Mentors. Who is he? Wikipedia says Robert Toru Kiyosaki is an American investor, businessman, self-help author, motivational speaker, financial literacy activist, and occasional financial commentator. Kiyosaki is perhaps best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written over 15 books which have combined sales of over 26 million copies. He has created three "Cashflow" board and software games for adults and children and has a series of "Rich Dad" CDs and disks.
As a devout global financial literacy advocate, Kiyosaki has been a staunch proponent of entrepreneurship, business education, investing, and that comprehensive financial literacy concepts should be taught in schools around the world.
Here is a video or Robert Kiyosaki talking about Financial IQ
Here is my Conclusion:
- Financial Intelligence means being Financially Educated and having a Financial Management System that works for you.
- It is Important that each person has a High Average Financial IQ for money has a very important role in our life today.
- To be Financial Educated, it starts from within. Your DECISION. Decide to be financially educated, raise your financial IQ and have a financial management system. Resources are available at hand. It can be your friends, family, books, newspaper and Internet.
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