The Role of Accounting Fundamentals in Strengthening Financial Literacy Among Non-Accountants

Financial literacy has gained prominence as a critical life skill, influencing individual well-being, family stability, and even national economic growth. Non-accountants—individuals without formal accounting training—often face challenges in interpreting financial information, managing budgets, and making investment decisions. Accounting fundamentals, including principles such as the accounting equation, accruals, double-entry bookkeeping, and financial statement analysis, provide a structured framework for understanding financial activities. By bridging this knowledge gap, non-accountants can develop stronger financial awareness and resilience.

Theoretical Framework
The role of accounting fundamentals in financial literacy can be understood through two theoretical lenses:

1. Human Capital Theory – Suggests that acquiring financial knowledge enhances individual productivity and economic well-being.

2. Decision-Usefulness Theory – Proposes that accounting information should be relevant and reliable to support effective decision-making.

When applied to non-accountants, these frameworks highlight how accounting knowledge not only enhances personal competence but also fosters informed participation in economic activities.