FQ: The nth Intelligence

FQ: The nth Intelligence

Jun 30, 2015


I first thought of including a chapter on money matters for my first book one afternoon in Starbucks Ash Creek branch while I was waiting for my sons to come out of school. I turned on my laptop and started typing…


Chapter 6: Money Matters (Our Sons’ FQ)

The Theory of Multiple Intelligences by Howard Gardner includes seven core categories namely, 1.) Logistic-Mathematical, 2.) Verbal-Linguistic, 3.) Bodily-Kinesthetic, 4.) Interpersonal, 5.) Intrapersonal, 6.) Visual-Spatial, 7.) Musical. Then in a symposium in 1997, Gardner added an eighth intelligence – Naturalist.

I am proposing the ninth intelligence: Financial Intelligence. Let’s call it FQ (Financial Intelligence Quotient), an addition to IQ (Intelligence Quotient), EQ (Emotional Intelligence Quotient) and AQ (Adversity Quotient)

FQ cannot fall under mathematical intelligence because someone who is a genius in Math can be bad with his financial affairs. Financial Intelligence is the ability to make sound decisions in managing one’s personal finances. Honing and constant practice of this skill will ultimately bring financial freedom. Someone is financially free if he has control over his money, can make his money work for him, enabling him to enjoy other endeavors in life.

Whether your child is a boy or a girl, the basic tools you teach about money matters are the same. However, it can be an advantage for your son to be good with money because no matter what is said about the equality in husband/wife roles, the burden of bringing home the bacon will still rest on your son’s shoulders when he eventually starts his own family. Also, even if his wife will do the actual budgeting, it will still be helpful if he not only knows how to earn but also knows how to handle money. This will enable him to figure out if his wife is spending too much (if despite his high salary, nothing is left for savings) or on the other extreme, if he’s expecting a mission impossible from his wife (if he expects gourmet dinner every night and frequent drinking parties with the best pulutans for his buddies despite his meager take-home pay).

Let us teach our sons financial intelligence so that they will live happy and fulfilling lives…


Fast Forward

Little did I know that this chapter would become the common favorite chapter among the readers of Raising Pinoy Boys.

My editor told me that Chapter 6 can be one separate book. And I’ve been thinking of writing an entire book out of this – it’s still in my list of pending projects. In fact, this article’s title sounds like a good book title for that project.

Then of course, Raising Children with High FQ was born when PhilStar.com invited me to write for them. This has been one happy journey for me and I’ve probably written over 140 articles under this column. I’ve not only shared but also learned more on the subject matter as I tried to answer your questions in this column. Sometimes I write about topics that are not strictly about FQ but still somehow connected because I believe that FQ is not so much a set of financial skills but a value system. And that value system is definitely affected by all aspects of life.

There’s also The Retelling of the Richest Man in Babylon (now with a Filipino version Ang Muling Pagsasalaysay ng Ang Pinakamayaman Tao sa Babilonya). In all of these plus my talks, workshops and interviews, the common denominator in my approach to FQ is for it to be a fun family affair.


The joy of sharing

In my last couple of talks, I was approached by participants to tell me how they have been inspired. One young lady said, “Miss Rose, this is the second time I’ve heard you give a talk. I really love you!” To that I could only say, “Wow naman! I love you na rin!” Then she went on to say why, that she would apply the things she learned in raising her own family. My two co-speakers, both young married women already successful in their respective fields, separately said, “When I turn 50, I want to be like you!” Some inform me that their young kids have already memorized the three basic laws of money!

These are all music to my ears and I am grateful for the gift of sharing. Thank God for helping me gather all my midlife guts to have the audacity to write my first book! I’ve had my manuscript for quite some time then but I hesitated because I was a little afraid to share our stories. Fortunately, midlife gives you the confidence to take risks and not bother too much about the outcome but focus more on the purpose.


Full Circle

When I left the Finance industry to care for my young sons, consequently giving up half of our family income, I became more conscious of our spending, saving and investing. Cash flows were prepared on a monthly basis with OC-ness and Balance Sheets were updated on a quarterly basis. Even little boys were taught how to save, invest and prepare their own Balance Sheets. I really didn’t expect that when I left the Finance industry in 1994, I would come back to it one day, this time to demystify it, to help make its concepts easy to understand with a little bit of fun, so that this all important nth intelligence – FQ – could be enhanced in everyone, one family at a time.

Cheers to High FQ!

Should you wish to show your children the magic of compounding, download this Excel file below.

Magic of Compounding1

Magic of Compounding download link





I will speak at Avida’s 25th anniversary event Lifespiration Conference on July 11, 2015 at Grand Ballroom of the Fairmont Hotel, Makati City. It’s open to participants aged 21 and above. Register and secure a seat at brand@avidaland.com or call Camila Benipayo at 0917 8456581. Watch this video to be inspired – What inspires you to reach your dreams?


Rose Fres Fausto is the author of bestselling books Raising Pinoy Boys and The Retelling of The Richest Man in Babylon. Her new book is the Filipino version of the latter entitled Ang Muling Pagsasalaysay ng Ang Pinakamayamang Tao sa Babilonya. Click this link to read samples of the books. Books of FQ Mom Rose Fres Fausto. She is also the grand prize winner of the first Sinag Financial Literacy Digital Journalism Awards.

Photo Attribution:  Image by Mark Dela Cruz used in Chapter 6 of Raising Pinoy Boys.

This article is also published in PhilStar.com and RaisingPinoyBoys.com.