Why is it important to be financially literate?
Employers will expect you to understand a range of financial concepts e.g. budget, credit, debit, cash flow, cost, price, value, income, profit, revenue, loss.
You will then be expected to apply these concepts to make effective decisions within business settings and personal life.
This competency is similar to business and commercial awareness in that it requires an understanding of external factors that have an impact on your own decision making. An employer will expect you to be well-organised and knowledgeable and understand the implications of any financial decisions you make.
For example, are you able to:
- create a basic finance spreadsheet with profit, costs, totals, etc?
- use online tools to get the best deal for travel, finance products, etc?
- understand currency conversion and the impact of changing exchange rates?
See below for further reading on money management and personal finance advice, and our page on self-employment and enterprise has more information about being responsible for your own business, including planning your finances and accounting.