Finance is considered as the life blood of every business because the success of each business is mostly dependant on it. Many business firms fail or claim bankruptcy because of an inadequacy of finance. Without efficient financial planning no business can achieve their desired goals. Prior to the industrial revolution finance was not considered so important for business organizations, because methods of production were simple and labor was more important than capital and finance. Nowadays however, the roles have reversed and capital and finance have become priority.
Outside the realm of business however basic financial skills are also critical in today's environment. Financial skills are needed in order to manage finances on a personal level.