Archive Daily Archives: October 1, 2017

What is Financial Intelligence?

​Defining Financial Intelligence

​To ensure we are all on the same page, I'd like to define a few terms and develop a working definition of financial intelligence. Let's turn to Webster and start by defining the terms as they appear in the dictionary.  

Definition of financial: relating to finance or financier.

Definition of finance(s)
1: money or other liquid resources of a government, business, group, or individual.
2: the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities.
3: the science or study of the management of funds
4: the obtaining of funds or capital :financing.

Definition of intelligence
1: the ability to learn or understand or to deal with new or trying situations: reason; also: the skilled use of reason.
2: the ability to apply knowledge to manipulate one's environment or to think abstractly as measured by objective criteria (such as tests).
3: the act of understanding or comprehension.

Working definition of Financial Intelligence
1: the ability to learn or understand or to deal with new and trying situations in regards to money or other liquid assets.
2: the act of understanding or comprehending the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities.
 
In other words, the more you understand how money works in our capitalistic society, the higher your financial intelligence (which I will begin to refer to as FQ).