Tag Archives: financial literacy

The finance metrics that matter most to startups | The Startup Magazine

You don’t need to be an accountant to start a company but you should become intimate with key accounting metrics.  Lack of financial literacy is the greatest threat to a global surge in entrepreneurship.  Most companies fail because their founders had little or no financial acumen.

Such was almost the case with my first company.  Pockets filled with seed money, I worked hard on creating nice products and chasing down new customers only to be in deep trouble within a year.  The only financial focus I took was to deposit cheques and pay bills.  The only metric I looked at was my bank balance and as money ran dry.  The less I had in my account the more I looked at it. The disaster was avoided only after I brought in a great CFO and took classes on accounting.

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Most 20-Somethings Can’t Answer These 3 Financial Questions. Can You? |Time Money

A new study finds that young Americans could use some help when it comes to managing their money.

Just in time for financial literacy month, a new San Diego State University study of young Americans has found that they are lacking when it comes to financial knowledge and behavior.

Out of these three questions measuring basic financial knowledge, the average respondent could answer only 1.8 correctly—and only a quarter got all three right. (Answers are at the bottom of this story.)

(1) Do you think that the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.

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How Entrepreneurs Can Manage Their Personal Finances | Allbusiness.com

Compared to other workers, entrepreneurs tend to enjoy an advantage in financial literacy. The know-how required to invest, organize, and save funds for a business often applies well to personal finance management, so these individuals run a “tighter ship” at home.

But this isn’t always the case. Business owners can lose their way financially by going to one of two extremes: Tying their personal finances too closely to their business resources, or running their personal finances quite differently from how they manage company money.

An unbalanced approach in either direction can lead to financial difficulties in the form of squeezed budgets and damaged credit. On the other hand, entrepreneurs who can strike a middle ground between these extremes enjoy greater financial security and success in their business and personal lives.

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