Three ways your financial literacy will improve while studying accounting

Money is a notoriously secretive topic, meaning that many of us don’t grow up having open conversations about debt and budgeting. Unfortunately, this means that when you leave home and set out on your own, you may struggle to manage your finances in a sensible way, and find yourself in financial trouble as a result. This can have long-lasting repercussions, with a poor credit score making it hard for you to secure a mortgage or other loans.

That’s why financial literacy is such an important skill for any adult. Understanding how money works and how to live within your means from the start of your financial independence will set you up for life.

If you’re studying accounting, then you’ll be better placed than most people to learn financial tips and tricks from the day you arrive at college. Not only will your studies prepare you for success in your career, but you’ll also gain plenty of knowledge that is applicable to your personal finances too. Let’s explore this in more detail.

Gain a better understanding of financial concepts

At first glance, financial concepts such as compound interest, investing and debt consolidation can feel overwhelming. There are a lot of factors to consider, and new terminology to wrap your head around when you start out. Studying accounting will mean that you get used to these words and concepts as part of your day-to-day studies, allowing you to better understand where they apply in your own life. By the time you graduate, you’ll be using these terms with ease, and will be able to explain them to others too. 
By attending college, you’ll have the opportunity to ask any questions you may have, and gain the insights of your professors. The internet is a fantastic tool for increasing your financial literacy, but nothing compares to having access to an expert.

You’ll get to put theory into practice

Understanding financial theory is all well and good, but it isn’t a substitute for real-life application. During the course of your accounting studies, you may have the chance to utilize case studies, industry work experience or business practice days. These allow you to put your theoretical knowledge into practice, under the supervision and guidance of your tutors and in collaboration with your peers. 

Not only does this increase your knowledge, but it can also give you confidence both in your first professional role and with your personal finances. As well as learning what works well, you’ll be able to see the impact that errors can have, in a risk-free space.

Access to industry information

Part of improving your financial literacy is knowing where to look for information. Banks and other financial institutions often release guides or toolkits, but these are only updated every so often. As an accounting student, you’ll have access to the latest industry information, whether that’s email newsletters, magazines or simply knowing which online accounts to follow for reputable advice on social media. 

You’ll also be able to discuss any new legislation or advice with your class, allowing you to make sure you fully understand the implications of this new information. Additionally, part of being at college is developing your critical thinking. This skill will stand you in good stead for developing sound financial habits, rather than being swayed by every piece of advice.

Develop your financial toolkit

Your college years as an accounting student are a fantastic opportunity to develop both your professional skills and learn tips that will help your personal finances. Financial literacy is a powerful tool, improving your chances of monetary stability, lowered stress and a better quality of life.