What is Financial Quotient? – FUNDamentals

While many people are familiar with terms such as Intelligence Quotient (IQ) and Emotional Quotient (EQ), there’s a similar term that also applies to financial literacy. This term is called Financial Quotient (FQ), and according to Registered Financial Planner (US-based Global Certification) Edric Mendoza, it’s important for us to familiarize ourselves with it. 

In an episode of FUNDamentals on PLUS Network, Mendoza says that financial quotient covers six areas: spending, debt and credit, career and income, investing, planning, and risk and protection. The financial quotient is a measure of how well we know those areas and how we are able to apply what we learned from those areas. The application is just as important as the knowledge, because we can have a lot of information and still be unable to apply it to better manage our finances. 

Mendoza also previously covered all the different areas of financial quotient in past episodes of FUNDamentals:


Debt and Credit

Career and Income



Risk and Protection

In the same episode, Mendoza also asked questions to test your knowledge on financial literacy, which covers the different topics of financial quotient. But he repeats that application is still the most important factor, for as he quotes finance personality Dave Ramsey, “personal finance is 80% behavior and only 20% skill and head knowledge.“ 

While it is important to learn about financial literary and measure our financial quotient, it we don’t act on it and change our behavior, nothing will happen. Now that you have learned about your financial quotient and it’s different areas, it’s time to apply them. 

For more financial tips, you can watch more episodes of FUNDamentals. For more stories for professionals, visit PLUS Network on Facebook, Instagram, Twitter, and  YouTube. 

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