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Financial Literacy Essay

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Alex Efird Smith
Research Paper Rough Draft
March 8, 2018

The Importance of Financial Literacy
Financial Literacy is the junction of financial, credit and debt management and the knowledge that is necessary to make financially responsible decisions. You need to know how a checking account works, what using a credit card means, and how to avoid debt. Financial Literacy is about trying to balance a budget, buy a home, fund the kid’s education, and ensure an income at retirement. People can no longer rely on pension plans and Social Security is going bankrupt. There are banks, credit unions, brokerage firms, insurance firms, credit card companies, mortgage companies, financial planners, and other financial service companies out to get your money. They create confusion for the consumer. Financial Literacy is important because with the knowledge of how to …show more content…

Accounting is “the language of business.” Business means money, so if you want to understand business and money becoming a CPA is a good start. To become a CPA requires passing the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of related accounting experience. Continuing Professional Education (CPE) is also required. CPAs can lose their licenses if they fail to pay fees, fail CPEs, or do discreditable acts. Accounting measures the results of an organizations economic activities and relays this information to creditors, management, and regulators. The recording of financial transactions so summaries can be presented is known as bookkeeping. Double-entry bookkeeping is the most common system. Financial Statements are audited and prepared according to generally accepted accounting principles (GAAP). In 2012 “all major economies” have plans to adopt the International Financial Reporting Standards (IFRS). The world is going

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