Would you be able to answer correctly?

- Issue #5

April 16, 2023

Let’s recap…

Only one point today: understanding finance can help people and businesses peacefully go through financial crises?

FinTech Weekly Perspective

Among the many questions posed by the current crisis – and possible recession – we’d like to answer one question in particular: when people know about finance, are they able to navigate everyday life even when economic and financial conditions are adverse?

In this case, knowing about finance doesn’t mean having a degree, but knowing how to manage your finances, how to make the right choice, and – for business owners – how to manage their business finances.

This might sound weird, but actually, in most cases, behind a crisis there are two main elements: news and panic. We decided to analyze what would happen if people were sure of their financial knowledge:

The Importance of Finance: Why Finance Is Important To Live – And Understand the World

And there’s an interesting element in this article: as three Nobel Prizes assessed, it’s the bank run that causes the crisis – not the other way around (... in most cases).

What if we were always able to read the news correctly? What if we were able to always avoid financial panic, to distinguish between a natural downturn and a sudden catastrophe? What if the investors of the Silicon Valley Bank were able to listen to the CEO, and stay calm?

Well, we can’t know that. But we could try to avoid other disasters in the future. It all comes down to two main topics: saving and investing. And the main character of all financial stories is people.

So, at the end of the day, understanding how to correctly manage personal and business finances is the key to understanding the world. Are you able to do that?

In our article, you’ll also find a little survey you can take to test your knowledge – and if you need any help, FinTech Weekly is your source to understand fintech and finance!