financije

Financial Literacy – Why Is It Important?

There is no doubt that finance is an essential part of both the private and the professional area of life. Whether we work in the financial sector or not, it is extremely important to understand at least basic financial concepts because they affect all business activities.

Therefore, we will consider the ways finance influences decision making, your competitive advantage in the labour market, and business efficiency, as well as the most effective way to learn more about it.


Making decisions

Decisions, even the smallest daily ones, affect our future. Finance is intertwined with all aspects of our lives, so it is likely that we will make the right decisions if we have at least some basic knowledge of it. Finance is a field of economics that studies financial markets and the distribution of money and capital, and its main areas are business finance, public finance, fiscal finance and monetary finance.

If you are not a financial expert, becoming familiar with the basic financial concepts can help you make better personal decisions and manage everyday business tasks more successfully. Financial reports are accounting products “created” for making good business decisions.

 

Competitive advantage in the labour market

In the age of globalisation, basic economics literacy is one of the most important competences of non-financial professionals and managers. Many international companies invest in financial education of their non-financial professionals, and for good reason.

Whether you are studying, job searching or working hard on advancing your career, in today’s labour market it is desirable to be on familiar terms with basic financial concepts. And it is clear why.

Finance is the language of business, and if you are part of it, it is crucial to master its concepts, terminology and logic. You don’t have to take a long-term, time-consuming course where accounting is studied in detail. What you need is to understand its basics so that you can participate in discussions on financial topics, which are inevitable in the world of business!

 

Business efficiency

Economic logic and financial calculations are at the core of every business activity, so it is necessary to be familiar with the laws of economic relations when taking actions. Business efficiency is, among other things, measured by the gained profit, one of the main goals of every business enterprise. All employees, not just the ones responsible for decision making, affect their company’s business efficiency.

 

Why should you learn finance with LPC online?

To save you precious time and other resources, we have created the online course Financije za nefinancijaše which will introduce you to basic financial concepts through our highly effective, tried and tested LPC® method, whenever it suits you best!

Our easily comprehensible and accessible online lessons will provide you with the optimal amount of useful information, data, examples and forms that will help you understand the basics of finance, learn about the three primary financial statements – balance sheet, profit and loss account and cash flow, and recognize the differences and links between them.

The course is intended for beginners in finance, students and people just starting their careers, as well as the employees who want to improve their competences and all non-financial professionals aware of the importance of financial literacy.

 

Now that you have read this blog, we are certain that we made you aware of the importance of being financially literate and able to make responsible financial decisions, both privately and professionally. Therefore, if you are not a financial expert, now is the right time to become acquainted with the basics of this field of economics that affects all areas of life, and learn how to make it work to your advantage!