“Doing what successful people do is easy”, these are the words of Robert Kiyosaki in exacting the difference between being wealthy and doing wealthy (Kiyosaki, 2013). Others seek out for money as they see it as important in life. While it is important, seeking for money alone is not enough. Kiyosaki (2008) ignored money, gold, mutual funds and other assets that would make up for ordinary riches instead the focus were on knowledge, information, and wisdom. To Kiyosaki (2013, 2008), it is financial intelligence that would make up wealth.
Financial intelligence was developed in Australia by (Kiyosaki, 2013). The conceptual tool which he developed to categorize the four major ways income is earned. Depicted in a diagram, this concept entails four groupings, split with two crossed lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income.The financial intelligence (FI) was used in many studies to describe the person’s level of information and ability to use the information for financial stability.
Financial Intelligence means being Financially Educated and having a Financial Management System that works for you.It is Important that each person has a High Average Financial IQ for money has a very important role in our life today.To be Financial Educated, it starts from within. You’re decision. Decide to be financially educated, raise your financial IQ and have a financial managementsystem. Resources are available at hand. It can be your friends, family, books, newspaper and Internet. (Kiyosaki, 2012)
Thus this study shall be conducted to measure the financial intelligence of business administration students.
Statement of the Problem
This study ...
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...ing variables. Cite authors who are saying that financial intelligence vary by age, sex, civil status, and the academic training.
Significance of the Study( after hypothesis
The study will determine the impact of financial intelligence for business administration students. It describes the person’s level of information and ability to use the information for financial strength.
Business Administration Students. This study examine their financial intelligence and how it will benefits in developing theirknowledge and information in order for them to become financial intelligent. Thus, this study will enable for the students to enhance and be broadin financial world.
Future Researchers. Lastly, the result of the study can be used by other researcher as a secondary source of data in their respective future related research on measuring financial intelligence.
I believe Life is a gift and a responsibility to gain from society and gives it back all the good things we learn from our surroundings and our community we live in. Finance Management in an effective way is required for self and for the society. I believe a successful management of finances is interlinked to oneself and the surrounding society which we live. To improve upon the effective management of my finances I discovered my monthly income than I checked upon my monthly expenses on f...
...financial education for their workers to increase their awareness as well as contribution for their retirement. This is due to financial information played a significant role in increasing contribution rate (Robert Clark and Schieber, 1998). Insufficient knowledge concerning the retirement savings process will enable the individual to make any optimal decisions regarding retirement savings. People can obtained information and make decision through socializing with others. There are researchers who believed that highly social people may be more likely to invest for their future saving (Bailey, Jeffrey J. Nofsinger, John J. and O’Neill, 2003). A study suggested that peer effects may be an important determinant of savings decisions. Their paper showed that peer effects are another source of extra-economic influence on people’s decisions (E. Duflo and E. Saez, 2002).
Ultimately, this study shows that it is common for one person to rely on knowledge of another person’s financial aspect of life when determining whether or not to invest interest in them. Of course, there are other matters that could have altered these results such as if racial, cultural, age, or gender differences/expectations were considered. The matter of this study is prevalent in the field social psychology as well as everyday life.
Willingham, Daniel T. "Why Does Family Wealth Affect Learning?" Ask the Cognitive Scientist: (2012): 1-7. Web. .
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
A portion of the students were placed in the class and a portion of students were not given any formal classroom financial literacy training. All students participated in the Junior Achievement Finance Park simulation in which they were placed in real-life situations and had to make financial decisions. Their decisions affected their personal income and lifestyle within the simulation. The educated group “showed profoundly greater understanding of the financial issues they faced. Their completion rates were higher, they saved more, and they spent less on immediate gratification items such as clothing. These items were consistent with the lessons offered in the curriculum they received” (Carlin & Robinson, 2012). Also, the classroom students were more likely to use available resources, known as decision supports, to help them better understand their potential decisions. An example of a decision support includes additional information provided by a business to further explain their product or its features (i.e. explaining premium options on a health insurance plan). The study believes that “timely decision support and financial literacy training are complements, not substitutes” (Carlin & Robinson,
The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus...
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
And finally, education and training is the key, both for the consumers of financial products and the people serving them. Financial literacy impacts financial decision-making. Consumers, at the minimum, should educate themselves about basic financial concepts to enable them to differentiate between what is right and wrong. Asking the right questions about fiduciary responsibilities, fees charged and products recommended would go a long way in minimizing the potential of being taken advantage of.
In a journal article entitled "The Relation between Financial Literacy, Financial Wellbeing and Financial Concerns", Roshan Abdoreza states that a questionnaire showed that married people and men are the most financially literate, and higher financial literacy leads to less financial concern. Daniel Ray's statistics from CreditCards.com state that in 2012, Generation X(people born between the early 1960s and the early 1980s) had forty-two percent more debt than other generations. Since most of Generation X is at the age to get married, the number of financially literate married people might soon decrease greatly. These frightening statistics can be fixed as they have been in years past, but if Generation X continues in their current direction, the statistics will not change. In today's society, debt, unwise spending, and impatience are rising. Daniel Ray's statistics show that credit card debt has increased...
Finance is a field that had always fascinated me right from my undergraduate college days. What make me interested in this particular field of study are the art of finance and the complexity of investment market which would allow me to employ my personal skills, such as analytical and communication skills, along with my personal characteristics such as dedication and compassion for what I do. As one of the most important sector in the world, I believe it would provide me with a broad range of career options.
Block, S. B., & Hirt, G. A. (2005). Foundations of financial management. (11th ed.). New York: McGraw-Hill.
...g basis. By understanding topics such as insurance, taxes and banking, they would greatly improve their chances of being financially stable.
Whether it is dealing with the stock market, electronic commerce, portfolio diversification, or just simply allocating your assets, finance is more than just managing money. As technology progresses, the financial industry will advance and the demand for financial planners and managers could go down. However, there is no specific formula for allocating your wealth or for investing in the stock market. Every person and company is different, and the stock market changes constantly. People will always be running a business or a school, saving for retirement, financing a home, and investing their money. That is one of the reasons why I find finance so fascinating. Even if you aren’t making a career out of it, economic and monetary skills are vital for the rest of your life. Needless to say, finance is and always will be a diverse and ever-changing
Basic level of financial knowledge: refers to a set of skills and knowledge that allows an individual to make informed and effective decisions considering all