Journal of eLiteracy, Volume 2 Issue 2 December 2005

A new term that is fast gaining importance when it comes to matters of money and investing is financial literacy. This concept is important for every individual as well as business owner or Millionaire Blueprint trader, no matter how small or big their business may be. In fact, financial literacy plays a big role in determining how successful you or your business can be financially.

What is Ьfinancial literacy?

Being financially literate means to understand well the concept behind the working of money. Earning money is important but it is equally important to manage, invest and use it so that you can make full use of all your financial resources.

Why is financial literacy important for small business owners?

One advantage of having a big company is that they can afford to hire experts who have a vast experience in dealing with money matters. Small business owners usually invest their own savings into their business when starting out. They cannot afford the services of an expert during the early days of business and hence it is even more imperative that they are financially literate.

Small business owners would need to do tasks like budgeting, accounting, taxes etc. This may seem like an impossible job to do if they do not have a financial background.

Here are a few basic tips that will help small business owners to get started on the path of financial literacy:

Understanding expenses:

Most of the times small business owners would require financial assistance when starting out and they would apply for a loan. The first step before you apply for a loan is to have a complete understanding of all the expenses involved.

Doing so would give you a clear idea about the amount of money you would need to apply for. It is possible that after reducing your expenses, you might need a loan for a far lesser amount or maybe you wouldn’t need a loan at all.

Borrowing:

There are many resources today where you could apply for a business loan and get one successfully. It is best to compare all the options that you have before you apply. You can compare interest rates, terms and fees so that you get the best deal possible.

Reducing debt:

The process of reducing your debt will not be possible unless you have a thorough understanding of debt and how it works. Having a debt is usually not a favourable situation but it is necessary to understand how to manage and control it. Knowledge about debt will help you to always have the situation under control.

Your budget:

This simple process forms the basis of financial literacy. You do not need any fancy software of gadgets to start this process. It is advisable to check your budget regularly and have a weekly or monthly comparison of the amount you spend and your intended budget.

Financial literacy for employees:

When employees have a basic understanding about finance, it helps them to be positive and work more productively. It is a good idea to conduct training or workshops if possible for the employees about financial education. It will help them to understand your business better and the results will clearly show in their attitude and skills.

Financial literacy can help business owners to gain valuable knowledge and give them the confidence to face challenges. It is a great tool to aid them in planning their future. There are plenty of resources that are available today for business owners to learn and understand about finance.Financial literacy can have a huge impact on your business and it can certainly help you achieve success.

Table of Contents

Papers
  • Making Life Easier for Academics: How librarians can help staff weather the technological storm .
    Peter Godwin
  • An E-Learning Tutorial for Vocational E-Literacy.
    Dr Amanda C. Elliott and Ruth A. Hunn
  • More to life than Google – a journey for PhD students.
    Ruth Stubbings and Ginny Franklin

 

Case Studies
  • E-literacy and Andragogy � a view through the Community Content Lens.
    Rónán O’Beirne
  • Information literate staff: a response to the challenge. .
    Melissa Highton and Angela Newton

 

Work in Progress
  • Integrating Library Service and Instruction into Electronically-Delivered Classes.
    Frances A. May
  • DigEuLit – a European Framework for Digital Literacy: a Progress Report.
    Allan Martin
  • From secondary school to the world of work: the experience of evaluating Information Literacy skills development at Glasgow Caledonian University.
    Christine Irving and Dr. John Crawford

 

Notes and Queries
  • eLiteracy versus information literacy at eLit2005: what’s the difference, which should we prefer?.
    Nicholas Joint

 

Announcement
  • eLit 2006
    Allan Martin