As an aspiring non-executive director, one of the most crucial concepts to understand is the balance between being deeply involved in the governance of a company while trusting the management team to execute the day-to-day operations. The idea of “noses in, fingers out” is the guiding principle that sets effective directors apart. It’s about engaging strategically without micromanaging—especially when it comes to financials.

What Does “Noses In, Fingers Out” Really Mean?

The phrase “noses in, fingers out” might sound simple, but it encapsulates the fundamental role of a director in corporate governance. Directors are responsible for oversight, strategy, and risk management, but they are not there to run the business. The management team, led by the CEO, is responsible for day-to-day operations and execution.

The essence of this principle lies in strategic involvement—directors should be deeply informed and engaged with the company’s financials and broader strategy. However, they should never cross the line into micromanagement of operations. Directors must ask the right questions, challenge assumptions, and guide the company’s direction while allowing the management team to lead.

Why Financial Fluency Is Key for Directors

While this approach may seem intuitive, many non-financial directors struggle with the financial side of things. A lack of financial literacy can lead to uninformed decision-making or, worse, a passive approach where directors fail to challenge critical decisions.

As an aspiring director, having a basic understanding of financial statements and key performance indicators (KPIs) is non-negotiable. But you don’t need to be an accountant to be effective. What you need is the ability to ask the right questions and understand the strategic implications of financial data.

Here are just a few reasons why financial fluency is crucial for directors:

1. Informed Decision Making: Directors need to understand the numbers behind business strategies. Whether it’s capital allocation, cost management, or investment decisions, financial knowledge enables directors to steer the company in the right direction without getting bogged down in the details.
2. Governance and Risk Management: Financial literacy is also essential for understanding risks—whether they be operational, market-based, or financial. A well-informed director can spot financial red flags, such as declining profitability or cash flow issues, early on and help mitigate them.
3. Communication with the CFO and Executive Team: A strong relationship with the CFO relies on mutual understanding. A financially literate director will be able to ask insightful questions during board meetings and have more meaningful discussions with the finance team. This communication helps ensure the company stays on track and avoids costly missteps.

How to Balance the Two: “Noses In, Fingers Out”

Mastering the “noses in, fingers out” approach doesn’t mean directors need to be finance experts, but it does mean they should be strategic and inquisitive. Here are a few key ways to stay “noses in” without “fingers out”:

• Ask the Right Questions: When reviewing financial statements, a director shouldn’t just accept the numbers at face value. Question assumptions—are the projections realistic? What are the potential risks? What’s the cash flow position? A solid understanding of the key metrics will help you ask better questions.
• Focus on Strategy, Not Operations: Directors must always remember their role is strategic, not operational. While it’s important to understand the financial health of the organization, leave the tactical decisions to the executive team. Guide the overall strategy based on your financial insights.
• Use Financial Data to Drive Governance: Good governance isn’t just about compliance; it’s about using financial insights to make better decisions for the long-term success of the organization. Directors should ensure financial data supports the company’s overall strategy and risk management framework.

Conclusion: Financial Fluency for Effective Governance

Becoming a director is about leadership, strategy, and governance. It’s about knowing when to engage deeply and when to step back and let the management team lead. Financial literacy plays a central role in ensuring that directors can be effective stewards of the company’s future, spotting risks, asking the right questions, and making decisions with confidence.

So, aspiring directors—master your financials, stay “noses in”, and trust your team to handle the rest. After all, the best leaders empower others to do what they do best, while steering the ship in the right direction.

Students at the University of Maryland are fighting to get to the top of Michael McMillan’s class waitlists. No, he’s not lecturing on a flashy new topic like artificial intelligence or Taylor Swift, he’s teaching personal finance—and students are more interested in the subject than ever.

More than half of all Gen Zers are entering adulthood without any formal financial education, and it’s causing real generational financial trauma, according to a recent study. McMillan, who is an associate clinical professor at the University of Maryland’s Smith School of Business, says parents are in part to blame.

“Parents are either unwilling, not knowledgeable, or uncomfortable about talking about sex with their children,” McMillan says. “This happens in the same case when it comes to money and managing money.”

However, adults may not be teaching their kids about finances in part due to their own lack of financial know-how. Over 75% of parents report not being completely confident in their ability to teach their children about investing, according to a survey by the SIFMA Foundation. A similar percentage said they would enroll their child in a different school if it had financial education and investment courses. 

The benefits of teaching personal finance

Students’ finances are a leading cause of stress for most college students. In fact, close to three out of every 5 college students have considered dropping out of college due to financial stress, according to a recent Ellucian report, and nearly 80% of students say financial stress has harmed their mental health

When paired with the fact that college debt has ballooned to over $2.1 trillion, not many will argue against a need for personal finance education.

“Money causes stress, and money takes your attention away from your studies,” McMillan says. “So by helping them with finances and providing mentoring and counseling, we’re in fact, improving at least some aspect of students’ mental health, which is so important nowadays.”

Dorothy Kelly, lecturer of personal finance at the University of Virginia adds that having financial wellness can positively affect one’s entire life, including emotions, relationships, work productivity, and sleep.

“My ultimate goal for everyone, for all my students, is to make financial choices to enjoy life that allows you to enjoy life,” Kelly tells Fortune.

But, both professors say that despite the benefits, personal finance should not be required at the college level. Instead, students should want to take the course.

“Everybody needs to learn this, but we learn when we’re motivated to learn,” Kelly says. “And I encourage anybody—it’s never too late to learn. The sooner people start learning about financial literacy, the better; the sooner their life is improved.”

Does personal finance education work?

McMillan has taught college students about insurance, wages, and credit cards for decades but says he is constantly surprised that young adults are not familiar with basic financial information. However, a lack of personal finance know-how is not exclusive to undergraduates; McMillan says that even some MBA students lack foundational financial knowledge.

Today, he has two courses: one for first-years, sophomores, and transfer students and another for seniors. This division is not tied to basic versus advanced finance: it’s about focusing on what topics are most pressing for young adults. 

“If you’re trying to figure out how to make a budget, you don’t care about investing in bonds, all of these other important but in some ways esoteric topics based upon what your current needs are,” he says.

More than half of all states mandate high school students to take financial education courses to graduate, and the National Endowment for Financial Education says it can be largely beneficial. Its research has found that students in states with the requirement are 21% less likely to carry a credit card balance and take on average $1,300 less in private loans.

However, Kelly says that doesn’t always work. Despite Virginia being one of the states with the mandate, her students largely say they didn’t remember what they were taught—despite it just being four years ago.

And while there’s no guarantee a college course will revolutionize one’s budget either, Kelly says students have reported being much more equipped at things like signing up for insurance at their first job or using a budget to make their dream job work out financially.

Andrea Pellegrini, assistant director of the University of Illinois System’s University Bursar Student Money Management Center, notes that education can only go so far. 

“We also have to be advocates for change in a system that is not equitable in a lot of ways across the board,” Pellegrini tells Fortune. “And so advocating for marginalized groups, be them in college or out of college, is really important.”

She encourages individuals—no matter their age—to be aware of their finances, be skeptical of opportunities that sound too good to be true, and above all, be willing to forgive themselves.

“Don’t beat yourself up if something happens, recognize that it’s a learning opportunity, and identify where you want to make changes,” she says.

BY Preston Fore

Fortune 23-Jan-25

Your credit score is a critical piece of your financial health, yet many of its intricacies are shrouded in mystery. Beyond just making timely payments, there are lesser-known strategies that can have a big impact. Here are five secrets about credit scores that could help you boost yours effectively.

1. Utilization Timing Matters Credit utilization—the amount of credit you use relative to your limit—plays a major role in your score. But did you know timing matters too? Your balance is often reported on the statement closing date, so paying down your balance before this date can improve your utilization rate and potentially give your score a lift. Aim to keep your credit usage below 30% of your limit for optimal results.

2. Credit Mix Counts Diversity in your credit types can positively impact your score. A mix of credit cards, mortgages, and installment loans demonstrates to lenders that you can handle a range of financial responsibilities. If you’ve only ever had credit cards, consider adding another type of credit, like a small installment loan, if it makes sense for your finances.

3. Old Accounts Can Help, Not Hurt While it may seem logical to close unused accounts, keeping them open can actually be beneficial. The average age of your accounts factors into your score, so keeping older accounts open can help improve it. If these accounts don’t have annual fees, consider making occasional small purchases to keep them active.

4. Checking Your Own Score is Safe Many people avoid checking their credit report out of fear it will lower their score. In reality, only “hard inquiries” (from applying for credit) affect your score. Checking your own report, known as a “soft inquiry,” is harmless and a smart habit for monitoring your financial health.

5. Small Errors Can Hurt Big Time Inaccuracies on your credit report—like an incorrect balance or a mistakenly reported late payment—can drag down your score. Regularly reviewing your credit report can help you catch and dispute errors, potentially giving your score a quick boost if issues are corrected.

These lesser-known tips can make a meaningful difference in your credit score, giving you a better foundation for financial success.

Halloween is a holiday celebrated each year on October 31, combining ancient traditions and modern festivities.

It originated with the Celtic festival of Samhain, a harvest celebration marking the end of summer and the beginning of winter. Ancient Celts believed that on this night, the boundary between the worlds of the living and the dead was thin, allowing spirits to visit the earth. People wore costumes and lit bonfires to ward off wandering spirits, hoping to protect themselves and their homes.

As Christianity spread, the festival blended with All Hallows’ Eve, the night before All Saints’ Day on November 1, dedicated to honoring saints and martyrs. Over time, Halloween evolved, especially in the United States, where immigrants brought their autumn traditions, like carving pumpkins and telling ghost stories. By the 20th century, it had become the holiday of costumes, trick-or-treating, and community festivities that we know today.

Today, Halloween is celebrated with a mix of traditions, from costume parties and haunted houses to storytelling, decorations, and honoring those who have passed. While often seen as a playful holiday, Halloween also offers a chance to connect with themes of remembrance, the cycle of life, and the mysteries of the unknown.

Halloween can be celebrated in many ways, from traditional activities like dressing up, trick-or-treating, and decorating with spooky themes to more personal or meaningful practices that honor the holiday’s roots. Here are some ideas for acknowledging and celebrating Halloween, along with insights into how other cultures observe similar traditions:

Ways to Celebrate Halloween

1. Host a Costume Party: Invite friends and family to dress up as their favorite characters or spooky figures. You could even add themes or costume contests to add a creative twist.
2. Create a Haunted House: Transform your home or yard with eerie decorations, dim lighting, and sound effects for an authentic haunted experience.
3. Engage in Storytelling: Share ghost stories, legends, or folklore with family and friends. This can include traditional ghost tales or personal spooky experiences.
4. Carve Pumpkins or Make Lanterns: In keeping with the Irish and Scottish tradition, carve jack-o’-lanterns or make lanterns to place outside your home to ward off spirits.
5. Set Up a Memorial for Loved Ones: Since Halloween has roots in honoring the dead, setting up a small memorial or lighting candles can be a meaningful way to remember those who have passed.
6. Watch Classic Halloween Movies: Spend the evening watching horror films or family-friendly Halloween movies, depending on your preference.

How Other Cultures Celebrate Similar Traditions

1. Día de los Muertos (Mexico): This Mexican holiday, or “Day of the Dead,” takes place on November 1 and 2. Families create altars (ofrendas) to honor deceased loved ones, decorated with photos, favorite foods, marigold flowers, and sugar skulls. Parades, face painting, and traditional music are also part of the vibrant celebration, as it is believed that the souls of the deceased return to be with their families.
2. Samhain (Ireland and Scotland): Samhain, the Celtic festival that Halloween evolved from, is still celebrated by some in Ireland and Scotland. People light bonfires, dress up in costumes, and set up food offerings. In modern times, it has blended with Halloween, but traditional Samhain gatherings emphasize spirituality, honoring ancestors, and reflecting on the cycle of life and death.
3. Pchum Ben (Cambodia): This Buddhist festival, also known as the “Festival of the Ancestors,” takes place in September or October. It involves visiting temples, making food offerings, and praying for the spirits of deceased family members. It is a time for families to reconnect and honor their ancestors’ spirits, which are believed to return to the earth during this period.
4. Qingming (China): The Qingming Festival, or “Tomb-Sweeping Day,” is celebrated in early April. Families visit ancestors’ graves to clean and maintain them, offer food, burn incense, and make other symbolic gestures to honor and show respect to their ancestors.
5. Obon (Japan): In August, the Japanese celebrate Obon, a festival honoring deceased family members. Families prepare food, dance, and light paper lanterns, which are often floated on rivers or in the ocean as a symbolic farewell to the spirits of the dead.

Celebrating Halloween in a way that is personally meaningful can be enhanced by learning from these global traditions that also honor life, death, and the connections that continue beyond.