1) What is financial literacy? • Financial literacy is defined as understanding how to manage money effectively. Financial literacy is the knowledge and skills to make informed decisions regarding money matters. Financial literacy helps an individual fulfill personal, family, social and governmental responsibilities. What does it mean to be financially literate? It means that you know basic money principles. You understand financial principles such as interest rates, risk and return, credit management, guaranty, banking, insurance, time value of money and taxes. Everything else being equal, people who are financially literate are more likely to achieve their financial goals than people who are not financially literate. Financial literacy can help people buy a home, save money for emergencies, afford college tuition, start a business, and live comfortably in retirement. On the other hand, a lack of financial literacy can be harmful. Financial illiteracy can subject an uninformed person to excessive debt, predatory lending, misleading investments, unreasonable interest rates, and other deceptive practices.Financial literacy is paramount in today’s market place. Consumers are confronted with complicated financial choices that may have huge implications for them and their families. For example, people must choose whether to rent or buy a home, whether to lease or buy a car, whether to insure property, health, and life and for how much, whether to save for education and retirement - how much and through which vehicles.
2) How do I know whether I am financially literate? • If you are good with money for things like; paying bills, keeping a budget, balancing out money when you need to. • Or take the financial literacy test at http://www.rand.org/financial-knowledge-test.html
3) How do I compare with respect to others? • Go to the following website http://www.usfinancialcapability.org/
4) How does financial literacy in the U.S. compare with respect to other countries? • It will show you out of how many people that took the test knew what they was talking about with financial literacy.
5) Why should I become financially literate? • Have a better understanding of financial and banking products. • Be more prepared to pursue your financial goals. • Take control of your money. • Improve your saving skills. • Be more prepared for unforeseen situations.
6) Where to go to improve my financial literacy? • http://www.usfinancialcapability.org/
7) What if I want to have fun while learning financial literacy? • Themint.org
8) How do I promote financial literacy? • Tell your friends about it and tell them to tell their friends. • Or talk about it on internet.
9) Who is promoting financial literacy? • National Financial Educators Council(NFEC).
10) Are there any big plans happening on financial literacy? • Yes, teaching kids about financial literacy to prepare them for the real world.
A 11) Why is a business plan important? • A business plan is important to help the owner validate the business concept and set clear goals.
B 11) Who should write the business plan? • Who ever the business owner is.
12) How do I determine my start-up costs? • Every business is different, and has its own specific cash needs at different stages of development, so there is no universal method for estimating your startup costs. • Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment. • From Estimating Startup Costs
13) Why is competition important? • To try to come up with better ideas than other businesses.
14) What makes a successful marketing strategy? • Meeting the customers’ needs.
15) Where can a business owner go to receive advice with their business? • Talk to a business owner, who’s business that is doing great and the owner is experienced.