The Significance Of Financial Literacy Skills - Essay Example

The Significance Of Financial Literacy Skills Each discipline is characterized by its own language of which a comprehensive understanding of the subject is impossible without knowledge of the appropriate language. Basically, language forms an elementary factor of thinking and learning. My major discipline is accounting and it has its own special language which helps in communicating concepts and ideas that are specific to the subject. For some individuals, accounting is viewed as the necessary evil that has a language only those working with accounting systems can understand. With my intended motive of pursuing a major in accounting, the first and basic requirement is to develop my language peculiar to suit the subject for easy communication and achievement of organizational goals. Developing financial literacy is important in exploring the discipline of accounting which involves language and communication. Many educational institutions and curriculum setting boards such as the New Zealand Curriculum attach great importance to literacy skills and they mainly emphasize on literacy development. Some of the learning outcomes for accounting students in New Zealand include acquisition of accounting specialist vocabulary; ability to read and understand accounting text and terms; ability to communicate ideas and knowledge using accounting language; and ability to listen and read critically, and assess the value of what one hears or reads. Accounting has its own specialist terms and vocabulary which are used to disseminate accounting-specific knowledge.  For instance, company financial statements tell the story of any business using numbers and they substitute words. As a result, accounting is defined as the global language of business. For this reason, literacy development is important in reading and understanding accounting theories and concepts successfully from almost every part of the world. For example, the use of accounting language by students encourages increased competency and confidence in written, oral, and visual literacy activities. Additionally, understanding accounting language avoids confusion that may arise from accounting categories of words that could have different meanings in other subjects. Through accounting literacy development, students can manage to avoid misunderstandings when using everyday life words within the accounting context. A good example is the word capital. When used in everyday context like capital city, the meaning refers to the largest city. Further, the term human capital within the context of economics refers to experience, abilities, skills, education and other positive aspects brought into the company by the employees. However, within the accounting context, capital means the investment input by the owner into the business. Major subjects like Accounting also involve extensive academic writing and academic presentations for which literary understanding is quite useful. While academic writing involves accounting literacy expression in written form, academic presentations involve accounting literacy expression in oral form. In academic writing for accounting class, the expectation is that the student will manage to write reports for particular audiences with awareness of their diverse needs and the ability to meet them satisfactorily. Kerry Dirk has dedicated an entire essay explaining the importance of genre-specific knowledge in writing. For students developing their accounting needs literacy, genre-specific writing is handy since writing could be done for reasons like sharing opinions or explaining something or even writing for entertainment. Dirk describes how genres can be told from one another and he mentions that knowledge about a particular subject or genre is significant in understanding its meaning effectively and accurately (249). Giving the example of a joke about country music, the author explains that its understanding requires previous knowledge of the country music genre and other related elements. This is similar is the case of writing where every major subject is symbolized by its distinct use of language, format, genres, jargons, and so on. Accounting is one of them. For this reason, literary knowledge not only helps in understanding important concepts but also helps in advancing one’s knowledge bank. Accounting is one major discipline, which may use complex language in the sense that the meaning differs from the same usage in common language. In order to develop the literacy skills that help in understanding and absorbing accounting terminology and language, journal reading helps remarkably. In my case, the knowledge gained will be used to expand my knowhow such that I could use it to make decisions that make me creative, sensitive, and aware of the accounting needs in the society and solve them. Without the relevant accounting knowledge, a professional accountant will not function well in the local and international world of business. My preparation for my major in Accounting involves extensive gathering of accounting knowledge including current developments in the financial sector. Remaining updated with the latest information from the industry is also a major part of developing literacy skills. Reading assists in developing the necessary accounting-specific word bank and it also familiarizes an individual with the terms and their meanings which could later be used as a reference to an accounting concept. Reading academic accounting journals that are available on accounting theory and practice has greatly improved my knowledge on the subject. Accounting also requires that I gain knowledge in different fields like cultures as introduced in literature, anthropology, and social sciences. Cultural knowledge makes an accountant competent in different world cultures hence making him internationally competent.  Knowledge in history is also crucial for accountants in order to increase their awareness of society’s evolutionary nature, hence, allowing them to function sufficiently. In addition, knowledge about technology is crucial especially given the potential of technological changes that may take place and their impacts which can affect the field of accounting.  With knowledge from different fields, it will be easier for me to select the study areas especially in sciences, arts, and humanities particularly those that are compatible with my innate abilities and interests that will add up to competent educational experiences. Practical applications are important in the accounting and finance field. Although the theoretical frameworks and models provide a background, for a more meaningful understanding, applications are indispensible. This is the reason why I try to look beyond the assigned reading and textbooks in order to strengthen my accounting concepts as they apply to the industries today. In this regard, journal articles also provide industry applications to theoretical concepts and how they may or may not apply effectively to different situations. Reading journals and examining the various cases also allows me to develop formatting skills that are used in Accounting. Organizational reports and other sources of scholarly data provide the relevant accounting information. Accounting language, like any other disciplinary language, is complex and involves its own complex terminology. Also, with the emergence of new technologies, accounting is also developing itself in the domains of information communication technology. Accounting calculations and other numerical functions are now carried out using different software. Due to the fact that the field is evolving quickly, students opting for a major in accounting also need to know the various ways industrial giants and other organizations use technology to carry out accounting operations. Today, algorithms are designed by software engineers to carry out accounting operations. Book keeping is a task which is increasingly being carried out electronically in the professional world. Such knowledge of the processes helps in understanding the modern developments in the field. Another important thing to note is that a great deal of resources is present in libraries. Online institutional subscriptions of notable journals assist in academic writing and research. In general, involving oneself in intellectual activities helps in gaining literacy skills. There are a variety of formats and genres within the Accounting field. Examining allows a deeper familiarization with the purpose of each category in different contexts. In addition, print sources provided in class enrich an individual’s knowledge. Various class discussions have proved to provide valuable information regarding accounting theory. Like any discipline, accounting is also undergoing great development especially in its usage and applications. Therefore, it also helps to keep an eye out for accounting standards across various countries. Unlike medicine, accounting styles vary greatly across the globe. Different states have developed their own standards and benchmarks for accounting operations. So, reading and understanding different systems help in understanding the global scene in accounting. However, the most enriching experiences for developing literacy skills are reading journals, assigned readings, text books, and engaging in constructive discussions regarding the scope of accounting. My earlier learning habits proved to be useful because I consistently skimmed resources for useful information. This not only helped me in mastering the subject but the behavior augmented my interest in the field. In my opinion, the methods I have employed have advanced my knowledge in the accounting discipline. My efforts during preparation introduced me to the accounting discipline and my present activities have allowed me to learn not only the theoretical foundation behind accounting concepts but also a functional knowledge of how the concepts apply to the professional world. So, reading is a recommended activity for advancing knowledge and encouraging greater learning. Discussions on the other hand provide a great source of knowledge and promote thinking, which may otherwise be channeled to memorization. Accounting blocks are also common but with persistent effort, the barriers can be overcome. In conclusion, the development of literacy skills in a certain discipline is a critical part of learning. Each subject has its own defining characteristics and language of literature is a leading component. Accounting has various terms, which are understood differently in common usage than in the accounting context. Therefore, as Dirk said, knowledge of the major subject is central to developing the required literacy skills. This also applies to the accounting field. As such, I think it is essential for one to strive to develop their writing skills as well as to understand new concepts so that they may keep pace with the changes that may take place within the accounting discipline.   Works Cited Dirk, Kerry.'Navigating Genres'.Writing Spaces 1 (2010): 249. Print. New Zealand Curriculum Senior Secondary.'Literacy Skills In Accounting'. N. p., 2014. Web. 9 Jul. 2014. Read More