Financial Literacy

Financial literacy

Definition; it’s the level of awareness to financial matters to acquisition of money, valuable assets and with the heart of giving without violation…

of other peoples’ rights.This material has been organized to resolve one of the greatest challenges that has been facing this world i.e financial challenge.

Research has revealed that only 10% of the people in the world own 90% of the world’s wealth and  the remaining 90% of the world population own only 10% of the world’s wealth. I don’t know where you fall but the 10%wealth people have applied the down materials that am about to let you know which has made them so rich incomparable to some other poor ones. So now the good news  is that you can have and apply them and cross to this 10% supper rich gays. I want to assure you sincerely that you will financial freedom by making use of this material and your financial suffering will be history. You are advised to read it until you feel its fully understood and actually have become your belief . I have heard very many people read and listen to such kind of  material  and at the end it has no impact on them, the secrete is already revealed to you above (i.e reread.) I’m sure without applying this material you will go through this world  as failure with little or nothing for you and your children to inherit and the cycle may continue. so the time is now to cross the bridge.You will feel how being rich is good and you will be amazed with this secrete that is broken down for your easy absorption to attain prosperity. I urge you not to be selfish share the information with others. By doing so you are mastering it and remember a person who is to succeed today is that one who has amazed himself/herself in the problems of others to cause happiness to them. With this you are more likely to reach even faster than expected. first, take an assessment on yourself.

CHECKING ON YOUR FINANCIAL LITERACY LEVELS.

Below are sample questions to check on your financial literacy levels, please answer them calmly and be true to yourself you will understand your position at the end and please make sure that you improve on your weak and average areas surely you will achieve success.

Instructions

  1. Your answers are chosen within these five letters of alphabets which represents the level of your scores i.e. A, B.C, D, E and F.
  1. Where,   A=(85% -100%) =5 points-( I always do it perfectly)

                      B= (70%-84%) =4 points- (I always just do it)

                      C= (55%-69%) =3points-( I sometimes do it well)

                      D= (40%-54%) =2 points-( I sometimes just do it)

                      E= (25%-39%) =1 point -( I rarely do it)

                      F= (0%-24%) =0 points- (I don’t do it /I don’t know it)

N: B these statements cuts across all business,  professional and social life if you meet across one that is not applicable to you just ignore it.

No.

 Statement             

       scores

comment

 

 

1

I wake up every morning between 3:00am and 4:00am to prepare for my day.

A

B

C

D

E

F

 

 

2

Before approaching a bank for credit, i first look within my business for ways of improving its capital through savings and other souses of finance.

 

A

B

C

D

E

F

 

 

3

I hold separate accounts for my business and for my personal use and never mix funds from the two accounts.

 

A

B

C

D

E

F

 

 

4

Am not the sole authority

in the approval of business

expenses

 

A

B

C

D

E

F

 

 

5

i have a salary and

specified director’s

benefits which are paid

every month.

 

A

B

C

D

E

F

 

 

6

Director’s drawings of funds from the business are documented as personal loans to be repaid within a specified period of time.

 

A

B

C

D

E

F

 

 

7

I bank all business sales (cheques and cash) intact.

 

A

B

C

D

E

F

 

 

8

I have a weekly /monthly business imp rest which is reconciled and accounted for before renewing.

 

A

B

C

D

E

F

 

 

9

I never use business funds to finance family and other personal needs.

 

A

B

C

D

E

F

 

 

10

When making community donations with business fund, i make sure that the event is for promotion. 

 

A

B

C

D

E

F

 

 

11

I treat and recognize my business as a separate legal entity with obligations to its suppliers, bank, staff, tax, e.t.c.

 

A

B

C

D

E

F

 

 

12

I take a leave at least once a year and find quiet moments with family or relatives and friends.

 

A

B

C

D

E

F

 

 

13

 My family relatives friends and in-laws know that they cannot gain employment at the business unless they have skills, knowledge  and love/passion to offer in return.

 

A

B

C

D

E

F

 

 

14

There are clear policies and approval guides for granting credit sales which are respected by all myself inclusive.

 

A

B

C

D

E

F

 

 

15

I monitor credit sales regularly to avoid them becoming bad.

 

A

B

C

D

E

F

 

 

16

 I analyze my bank statements at least once a month.

A

B

C

D

E

F

 

 

17

 I deliberately end-ever to get suppliers’ credit from regular ones to combat my insufficient capital challenge.

 

A

B

C

D

E

F

 

 

18

I deliberately seek to get prepayments or full payment on delivery of service/goods.

 

A

B

C

D

E

F

 

 

19

My business keeps updated business records (ledgers, journals) for stuff salaries, sales,purchases,etc and i can rely on them.

 

A

B

C

D

E

F

 

 

20

 i monitor my stocks to ensure no losses due to obsolescence/expiry ,theft and other avoidable expenses.

 

A

B

C

D

E

F

 

 

21

 my business pays its taxes and staff obligations regularly.

A

B

C

D

E

F

 

 

22

 i carry out internal and external audits of business operations at least once a year.

A

B

C

D

E

F

 

 

23

 i keep separate business records and banking for each of my legally registered businesses , including cross borrowings and inter business investments.

 

A

B

C

D

E

F

 

 

24

 am comfortable delegating roles for purchase, daily banking, marketing etc.to other staff  as i concentrate on promoting the overall vision and mission of the business.

A

B

C

D

E

F

 

 

25

 my business produces semi-annual and annual accounts-cash flow balance shee, income statement-which are dutifully filed with regestrar of companies.

A

B

C

D

E

F

 

 

26

 dividends are declared after annual accounts have been produced and aproved.

A

B

C

D

E

F

 

 

27

 i have no problem voluntarily denying myself and family a dividend or a holiday to boost business operations.

A

B

C

D

E

F

 

 

28

I recognize that success in business and in life is more than financial wealth ; family integrity, health and social dimensions are just as important.

A

B

C

D

E

F

 

 

29

I use my financial statement to guide all decisions on new investments.

A

B

C

D

E

F

 

 

30

 My business has annual work plans and budgets that are monitored strictly.

A

B

C

D

E

F

 

 

31

I have no problem voluntarily selling my car, plot’ house or other treasured fixed assets to boost my business, whatever the public opinion.

A

B

C

D

E

F

 

 

32

I respond to requests to join other people in new business partnerships with a straight ‘no’ or ask for time to independently evaluate the opportunity.

 

A

B

C

D

E

F

 

 

33

 Before choosing my banker i had to check on there banking and credit products to establish if its suitable for the current and future needs of my business.

A

B

C

D

E

F

 

 

34

My bankers know and hold me and my business in high esteem and have often initiated discussions on how to support my business better.

A

B

C

D

E

F

 

 

35

Each time i have got to my bankers for banking or borrowing solution, i have engaged them in serious negotiations for the best possible deals.

A

B

C

D

E

F

 

 

36

I have at my initiative ever turned down (or have no problem doing so) a banking or credit offer because of burdensome terms interest rate, period ,fees ,etc.

 

A

B

C

D

E

F

 

 

37

 i have never and will not ‘doctor’ my loan application for the sake of getting a loan whatever the circumstances.

A

B

C

D

E

F

 

 

38

 i have people i consider my models for their financial discipline and business acumen and endeavor  to emulate them.

A

B

C

D

E

F

 

 

39

 am not an admirer of persons whose wealth does not seem to be a product of sacrifice, hard work and integrity.

 

A

B

C

D

E

F

 

 

40

 when my business borrows , i ensure prompt payments. In case of difficulties, i contact my bankers at earliest opportunity and comply with any promises agreed.

A

B

C

D

E

F

 

 


To get the score total all your points x 0.5 to get the percentage final score.

 

  1. habits of financially independent(rich) financially dependent people

 

No.

financially independent (rich)

 

financially dependent (poor)

1

money works hard for them

 

they work hard  for money

2

 they have goals

 

 they just work tirelessly

3

 work to leave a legacy

 

 work to pay

4

work smart 

 

 thy copay and past

5

they think they can

 

 they think they were coursed

6

 investing is their way of saving

 mattresses,boxes and bank

accounts is their way of saving

 

7

 ever looking for better and quality friend

s

 just find friends

8

 ever planing for the future

 

plan for today only

9

 take calculated risks

 

 just risk

10

 diversify their economies

 

 stick on only one particular thing

11

 get enough knowledge before they act

 

 they just act

12

 they do adventure

 

 less mindful

13

 set times for fresh thinking in quiet moments

 

 mind less

14

 join relevant associations maintain and grow

their values and enthusiasm.

 

 think its time and money wasting

15

they don’t give up

 

 easily surrender

16

 act with a purpose and on mission

 

 just act

17

 they count their time the way they count

their money

 

they less value their time

18

 pass on great ideas,advises and materials to

their children to stay in the lead.

no great ideas,advises and

property passed on to their

children, they want to get relived

of them.

 

19

 willing to pay the price

 

 reluctant

20

 ever looking for better system that works

them money.

 

 they supervise themselves or

use friends or relatives.

21

 attend financial and business seminars.

 

they attend social events only.

22

 invest in assets

 

 invest in liabilities

23

 use insurance as a hag again their risks

 

they think its a wastage of money.

24

 they have their main business they mastered

and just invest their profits in others

 

they just move from business to

business.

25

 have created stable investments as security

for their businesses e.g heavy trees, capital

markets etc.

 

 they don’t.

26

 employ experts

 

 employ relatives and friends

27

 they are focused and persist

 

 easily give up

28

 when they fail they learn do again in a better way.

 failure defeats them

No.

financially independent (rich)

financially dependent (poor)

1

Money works hard for them

They work hard  for money

2

 They have goals

 They just work tirelessly

3

 Work to leave a legacy

 Work to pay

4

Work smart 

 Thy copay and past

5

They think they can

 They think they were coursed

6

Investing is their way of saving

 Mattresses,boxes and bank

accounts is their way of saving

 

7

 Ever looking for better and quality friends

 Just find friends

8

 Ever planing for the future

Plan for today only

9

 Take calculated risks

 Just risk

10

 Diversify their economies

 Stick on only one particular thing

11

 Get enough knowledge before they act

 They just act

12

 They do adventure

 Less mindful

13

Set times for fresh thinking in quiet moments

 mind less

14

 Join relevant associations maintain and grow their values and enthusiasm.

 Think its time and money wasting

15

They don’t give up

 Easily surrender

16

 Act with a purpose and on mission

 Just act

17

 They count their time the way they count

their money

They less value their time

18

 Pass on great ideas,advises and materials to their children to stay in the lead.

No great ideas,advises and

property passed on to their

children, they want to get relived

of them.

 

19

 Willing to pay the price

 Reluctant

20

 Ever looking for better system that works them money.

 They supervise themselves or

use friends or relatives.

21

 Attend financial and business seminars.

They attend social events only.

22

 Invest in assets

 Invest in liabilities

23

 Use insurance as a hag again their risks

They think its a wastage of money.

24

 They have their main business they mastered and just invest their profits in others

They just move from business to business.

25

 Have created stable investments as security for their businesses e.g heavy trees, capital markets etc.

 They don’t.

26

 Employ experts

 Employ relatives and friends

27

 They are focused and persist

 Easily give up

28

When they fail they learn do again in a better way.

 Failure defeats them

 

5 thoughts on “Financial Literacy

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