Financial Literacy Skills Every Finance Manager Should Screen For

When search for top talent in the data-driven business landscape, financial literacy has become a non-negotiable skillset for finance professionals at every level. From managing budgets to interpreting complex financial statements, the ability to understand and apply financial concepts can significantly influence a company’s strategic direction and bottom line. For hiring managers and HR teams, this means that assessing financial literacy during the interview process is critical to securing the right candidate.

This guide explores the importance of financial literacy in hiring, outlines key skills to look for, and provides actionable methods for evaluating financial acumen across various experience levels. No matter the level of the role you’re searching to fill, this guide helps you prepare for interviewing your newest team member.

Why Financial Literacy Should Be a Priority in the Interview Process

Financial roles demand analytical thinking and strategic insight. Screening for financial literacy during interviews helps ensure that new hires can confidently manage the financial responsibilities that align with your company’s goals. By evaluating these skills early, hiring managers can reduce turnover, improve team performance, and support long-term business success. Candidates will also quickly understand if they have the correct skillset to move on to the next phase of interviews.

Key Financial Literacy Skills to Assess in Finance Candidates

When interviewing candidates for financial positions, it’s essential to screen for specific competencies that reflect their ability to handle real-world financial challenges. Your business may have specific software or skills you need new members to have before entering your team, and those can be addressed in early stages as well. To start, here are four core areas to focus on when getting started:

1. Balance Sheet Analysis

Candidates should be comfortable interpreting and analyzing balance sheets to understand a company’s financial health. Look for their ability to assess assets, liabilities, and equity and draw meaningful insights.

2. Budgeting Skills

Budgeting is foundational in finance roles. A strong candidate should be able to develop, manage, and adjust budgets while considering variances and aligning with strategic objectives.

3. Financial Forecasting

Assess the candidate’s ability to project future revenue, expenses, and profitability. This includes using historical data and market trends to make informed predictions.

4. Interpreting Financial Statements

Strong financial literacy includes the ability to read and interpret income statements, cash flow statements, and balance sheets. Candidates should be able to explain financial outcomes and make data-driven recommendations.

Who Needs to Be Screened for Financial Literacy—and Why

Entry-Level Finance Professionals

This is the time to confirm core competencies. For junior candidates, financial literacy assessments should validate their foundational knowledge and readiness to contribute. This is important when hiring candidates straight out of their college or graduate program, to ensure that they have the right foundation before training in order to thrive in their role.

• Foundational Capabilities: Entry-level applicants should demonstrate proficiency in basic financial concepts, terminology, and analytical tools commonly used in day-to-day operations.

Experienced Finance Professionals

Validate their strategic acumen and cultural fit. For mid-to-senior roles, the focus shifts toward strategic thinking, decision-making ability, and communication. While they may have worked in previous financial roles, it’s crucial to determine if they have the skillset to complete the tasks for your specific role, and determine how much additional training they will need.

• Strategic Insight: Senior candidates should be evaluated on their ability to connect financial data to business outcomes, provide strategic recommendations, and communicate effectively with stakeholders.

Effective Ways to Test a Candidate’s Financial Acumen

Choosing the right evaluation method is crucial and may vary based on the role’s seniority and responsibilities. Here are three effective ways to assess financial literacy, along with their advantages and limitations:

1. Skills Assessments 

• When to Use: Best suited for entry- to mid-level roles where technical accuracy and foundational knowledge are essential.

• How It Works: Administer online or in-person tests covering topics like balance sheet interpretation, budgeting exercises, and basic forecasting. These tests can be administered before the first interview to eliminate any unqualified candidates, or after the first few interviews to determine if they have the necessary skills.

2. Conversational Assessment 

• When to Use: Appropriate for most roles, especially when gauging problem-solving approaches and communication style.

• How It Works: Ask candidates to describe past experiences involving financial analysis, budgeting challenges, or strategic recommendations. This is where you can really hone in on how much their previous experiences overlap with your current needs.

3. Case Studies or Take-Home Projects

• When to Use: Ideal for final interview stages, especially for senior roles.

• How It Works: Provide a real or hypothetical scenario requiring financial analysis and decision-making. Allowing them to express how they would handle a certain situation will quickly show where the strengths and gaps lie in their experience.

Blended Approach: The Best of All Worlds

Using a combination of these methods gives a well-rounded view of the candidate’s financial capabilities. For example, a skills test could screen for basic proficiency, while a case study and behavioral interview reveal strategic and interpersonal strengths.

The Value of Financially Literate Candidates

Hiring finance professionals with strong financial literacy is more than a technical requirement—it’s a strategic advantage. These individuals bring clarity to complex financial data, contribute to informed decision-making, and help drive sustainable growth. Whether it’s through accurate budgeting, thoughtful forecasting, or insightful reporting, financial literacy empowers your team to achieve operational excellence. Establishing what you are looking for out of your interviewees early ensures that no one’s time is wasted and everyone still in the running has at least the hard skills to do the job at hand.

Partner with Professional Alternatives to Hire Financially Literate Talent

At Professional Alternatives, we specialize in connecting employers with top-tier finance talent equipped with the skills and experience needed to excel. We understand that in today’s financial climate, companies require insights and experience when hiring for essential finance jobs. Whether you’re looking to fill a key financial role or restructure your entire finance team, our expert recruiters can streamline your hiring process and ensure the right fit.

Ready to enhance your finance team with skilled professionals? Reach out to our finance recruiting specialists today and discover how we can help you find candidates with the financial literacy and business acumen to elevate your organization. We listen to your unique company needs to deliver the best financial talent the first time, contact us today to get started on hiring top talent today!