Financial literacy is a critical skill for small business owners, yet it's often overlooked in the hustle of running a company. Financial literacy refers to the ability to understand and apply various financial skills, including personal financial management, budgeting, and investing. For small business owners, it extends to understanding business finances—knowing how to read financial statements, manage cash flow, and make informed decisions about investments and expenses. These skills will help to ensure the financial health and sustainability of your business.