Financial literacy

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1. Organisational structure - governance - risk management.

The term "financial literacy" developed from the concept of language literacy, the ability to read and write to a minimum level to participate in activities mediated through text.

By extension, in the organisational context, financial literacy is the minimum level of financial understanding, skills and education that non-finance specialist managers need in order to be fully effective in their organisational roles.

The more senior the individual's organisational role, the greater the level of financial literacy they need in order to be effective.

Corporate treasurers need the highest levels of financial literacy to be fully effective in their work.

Resources - talent & skills
"The ACT requests that the next UK Government take all necessary steps to enhance the UK as an attractive place to do business...
Corporates require access to a deep pool of talent; workforces need upskilling to address particular skills gaps that have been identified by our members - these gaps include financial literacy, financial risk management and technology skills.
Furthermore, this access to talent needs to be disseminated across the whole ecosystem to futureproof the UK economy, especially addressing skills gaps in smaller organisations (who typically form the supply chains of larger businesses)."
ACT - UK General Election Manifesto 2024.

2. Financial wellbeing and inclusion.

The minimum level of financial understanding that individuals need in order to manage their personal and household finances, and mitigate their risks of being victims of certain forms of financial fraud.

See also