This paper analyses the varying importance of financial literacy and management of money. Daily purchases functioned as the primary use of funds in the past. Currently, the modes of payment are gradually evolving. The younger generation is relatively familiar with online shopping. As a result, the creation of overextended use credit. Financial literacy is the process of understanding the functioning of accounts and avoidance of debt. It has various elements, such as credit and debt management. Furthermore, it facilities the implementation of money management strategies. Therefore, ensuring effective budgeting of an individuals or organization’s finances Apart from debt management, financial literacy is one of the essential characteristics of entrepreneurs.
importance of financial literacy and management of money
MONEY MANAGEMENT STRATEGIES AND ITS IMPORTANCE
Money management is a similar term to budgeting. It is the act of setting an effective and efficient strategy for the spending of money. Money management is also a crucial characteristic of entrepreneurs in business management. By planning for the money, an individual makes rational decisions on spending techniques. Also, money management encourages saving and investing. As investors widen their financial base, they seek professionals to control their assets. The money management strategies these advisors include private banking, budget formulation, and compilation of debt. With evolving technology, researchers are continuously developing applications for financial management. These applications are a cheaper mode than hiring financial advisors.
money management strategies and its importance
IMPORTANCE OF FINANCIAL LITERACY AND THE ESSENTIAL CHARACTERISTICS OF A SUCCESSFUL ENTREPRENEUR
Owning a business is not an easy task and requires a lot of sacrifice and determination. Only individuals with the relevant characteristics of entrepreneurs can operate businesses. Furthermore, it is equally crucial for the implementation of good ideas to achieve business success. Entrepreneurs are individuals who are not afraid of taking risks but focus on the impending reward. Some of the characteristics are creativity, passion, optimism, future orientation, flexibility, and decisiveness. Moreover, an entrepreneur should possess the ability to implement various money management strategies. These characteristics mold entrepreneurs to run business hence improving overall productivity successfully. Also, financial literacy is crucial for a business in experiencing the underlying importance of financial literacy.
essential characteristics of a successful entrepreneur
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