Showing posts with label Financial Quotient. Show all posts
Showing posts with label Financial Quotient. Show all posts
How to gain Financial Literacy
Financial literacy is not taught in schools. It is up to us, to find ways to be financially literate.Here are a few suggestions on what you can do to increase your financial literacy.
1. Read books and attend seminars about Money.
If you are new at this, I recommend the following books:
Wealth Within Your Reach: Pera Mo Palaguin Mo!
by: Francisco Colayco
8 Secrets of the Truly Rich! by: Bo Sanchez
Rich Dad, Poor Dad by Robert Kiyosaki
Pwede Na! The Complete Pinoy Guide to Personal Finance
by: Efren Ll. Cruz
2. Read the Business section of a newspaper.
Make it a habit to read atleast 3 articles everyday from the Business section of a newspaper. If there are words you don't understand, take note of them and find someone who can explain them to you. (I am willing to help you on this, just leave a comment on my site. I will try to explain it to the best of my knowledge.)
3. Apprentice or volunteer in a business that you like.
Apply to volunteer or work for a company in an industry that you plan to start yourself. Hands-On training is very important. You will be acquainted with the INs and OUTs of the trade in no time. Like for example, if you want to start up a Coffee shop, consider applying as a barista at Starbucks, or any other established coffee shop in your area first.
4. Find yourself a financial mentor.
Approach financially successful people that you know and ask for their advice. Visit them from time to time whether you need advice on a financial matter or simply just to chat. Grab every opportunity to be around them. This can be your parents, successful relatives, or even your professors in school.
5. Start a Small Business.
The old adage "Experience is the best teacher" still holds true. Starting your own business will allow you be involved in all aspects of it including finance. Not only will you learn how to prepare income statements and balance sheets but you'll also learn about costing and pricing your products. It doesn't have to be big business. You can start by selling anything! Maybe you can sell sandwiches or lunch packs to your officemates or even start a cellphone prepaid loading center. As for me, I started selling home-baked brownies and it has given me additional income ever since.
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Financial Quotient of Filipinos
Based on the Financial quotient survey conducted by Citibank here in the Philippines, the average Filipino has a financial quotient of 47.8 out of a 100. Here are some characteristics common to us all:
- Less than 4 out of 10 Filipinos have a monthly budget.
- 3 out of 10 Filipinos have no insurance (life or non-life).
- Less than 4 out of 10 Filipinos set aside or save money every payday.
- Only 1 out of 10 Filipinos is saving up for a retirement plan.
- 5 out of 10 Filipinos said that they would ask the assistance of their children upon retirement.
- Filipinos only have about 9 weeks' worth of savings. (If you remember, Colayco advises to save at least 6 month's worth)
What's your Financial Quotient?
I got a score of 60 out of a 100. Basing on the average, it's not bad at all. But I have a long way to go.
What's your financial quotient? Take the test here. (Look for the Citi Fin-Q Survey)
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