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The importance of finance in your life as an individual cannot be overemphasized. Finance is a major part of our lives as individuals. It does not matter whether you are a career person or a business person. 
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The education we received in school did little or nothing in helping us understand what finance is, how it is made, how it can be increased and how it can be effectively managed. All of these makeup what we refer to as financial intelligence.  In this post, I will try to help you understand what financial intelligence is and how to develop your own financial intelligence. If you are a parent, please could you pass this on to your sons and daughters after reading this?

What Is Financial Intelligence?

Financial Intelligence refers to the art of intentionally developing useful knowledge and skills about money in a way that is beneficial to our short- and long-term goals.

Factors That Affect Your Financial Intelligence

When it comes to your financial intelligence, there are two major factors that affect your level of financial intelligence. These factors are your money mindset and your money habits.  
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Your Money Mindset

Your mindset refers to the prevailing belief you have of something. Your money mindset, therefore, refers to the prevailing beliefs you have of money. One of the ways you develop your mindset as an individual is through parental upbringing.  I would like you to reflect on your growing up days, what were the things your dad or mum taught you about money? Based on what you know now and what you have come to see and read, which parts of the information were wrong and which ones were right? To what extent are that information affecting you today?  If you are a parent currently or a future parent, make out time to help your children develop the right money mindset. They will be grateful to you for it. 

Your Money Habits

Your money habits refer to the prevailing action and decisions you take when you have money. Your money habits play out every day. Identify them and work to modify them, if they are wrong.  Some of the money habits individuals have that are the wrong include:
  • Unbudgeted spending – A financially intelligent person understands that no money should ever be spent without being properly budgeted. It is a wrong money habit to spend on impulse. Before you go to the mall or market for your shopping needs, discipline yourself to always go with a list of things to buy from that particular shopping trip. 
  • Spending every money made – When I was a kid, I started off a business and on the first day of my business, I made 30 Naira in profits. I subconsciously pegged my daily profits at 30 Naira. Subsequent days after that, I will always spend every extra profit I made after I had removed my 30 naira profit. It took the help of my mum for that habit to be corrected. It is a wrong habit to spend as much money as you make. 
  • Spending more than you make – To spend more than you make is to leave yourself in debt. Many salaried workers have the habit of spending more than they make and this is a wrong money habit. Many businesses have failed due to this singular reason.  
  • Borrowing to pay debts – Even without a degree in Economics, we don’t like hearing it when our government tells us they are borrowing, especially when the money to be borrowed will go towards servicing debts. This is a bad money habit. 


Financial intelligence is one skill not taught in school but that is needful in our individual lives. It will help make sure you are not just making money but you are growing the same. You may not have been taught the right habits about money, now you are an adult, you can begin to retrain yourself or should I say, ‘re-parent’ yourself.  Featured Image Source: Slideshare
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This article was first published on 31st January 2022 and updated on February 11th, 2022 at 10:02 am


Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.

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