Financial management can feel overwhelming and elusive for many artists and creatives. Irregular income, unpredictable opportunities, and the challenge of monetizing creative skills create financial uncertainty and unknowns for many of us. However, this doesn’t mean we have to feel powerless. One thing we can control is our financial literacy. Understanding financial basics is essential for building a sustainable creative career. Unfortunately, financial literacy is rarely included in artistic education—even though many of us become self-employed artists or creative entrepreneurs. As a result, most artists and creatives must develop financial literacy on their own.
Developing financial literacy is essential for artists and creatives who want to build sustainable careers because finances are an integral aspect of our work and livelihoods. Without some basic understanding it's easy to fall into cycles of financial stress and/or avoidance of financial tasks and decisions. I’ve seen first hand with some of my clients how this can then stifle creativity and limit opportunities and growth. Financial literacy empowers us to confidently navigate negotiations, set fair rates for our work, plan for slow periods and make informed decisions about investments, savings, and growth. Financial literacy is crucial to having control of our financial well-being.
Gaining financial literacy as a creative professional requires being intentional and proactive about what we learn. Here are some key areas to focus on:
Pricing Principles:
Pricing our artwork and creative services correctly is crucial for sustainability, yet many creatives struggle with it throughout their careers. They often base prices on perceived affordability or lack of confidence in selling themselves rather than on the true value of their work. When coaching clients around pricing, I guide them to consider factors such as time investment, material costs, expertise, complexity, and the physical, intellectual, and emotional effort involved. Fixed and variable expenses like studio space, equipment, and staff also need to be accounted for, along with market demand and competition. While some of these factors are straightforward, others require research and experience to quantify. The truth is that there is no one magic formula. But over time, pricing becomes less of a guessing game, enabling more informed and confident decisions that ensure fair compensation and sustainability of our artistic practice or creative business.
Budgeting Basics
Budgeting basics are fundamental skills for professional artists and creatives. We need to know how to build and track budgets for projects, funding and grant applications, proposals for clients and for our own planning and money management. Personally, I’m a bit of a spreadsheet nerd but I appreciate that not every creative person is so inclined. The good news is there are budgeting apps, tools and templates and educational videos available for free online and specifically geared towards artists. Recently, some clients have shared that they are creating budgets using AI tools which allows them to focus on what financial criteria they need to account for and track - which is really the point! - rather than figuring out or taking the time to set up formulas and calculations. Understanding budgeting basics helps artists and creatives take control of their finances, pursue professional opportunties and make informed financial decisions.
Funding Fundamentals
Be informed of potential financial support such as grants, fellowships, and residencies and how and when to apply. Researching and applying for these opportunities can provide funding for research, skill development, creation and presentation of new work and exposure to new markets and opportunities.
Additional Tips:
Regularly Check Application Deadlines: Funding opportunities often have specific application periods. Mark calendars with important dates to ensure timely submissions.
Network Within the Creative Community: Engaging with fellow artists and organizations can provide insights into new funding opportunities.
Consider International Opportunities:. Exploring these can expand both funding options and professional networks.
Reach Out for Advice and Feedback: Don’t be shy. Engaging with application offices and staff and asking questions ahead of applying can help shape your application to be more successful. Likewise, if an application is unsuccessful - seek feedback and ask how you could improve future applications. These are key learning opportunities.
Tax Essentials
Keep records of all sales, invoices, and receipts.
Understand permissible tax deductions for artists and creative businesses.
Consider consulting a tax professional familiar with professional arts practices and creative businesses.
Contract and Copyright Clarity
Contracts are essential for many professional opportunities, services and collaborations such as sale of work, commissions, representation, publication, distribution, copyright use and representation to name a few. Contracts define terms, deliverables, compensation details, clarify legal matters and add professionalism to these arrangements. While verbal agreements can hold weight, a written contract signed by both parties is far more reliable and often required. It helps prevent misunderstandings, disputes, and “my word against yours” situations. A well-crafted contract ensures fairness and protection for all involved.
Be sure to understand the financial aspects and impacts of contractual and copyright use agreements. Read the fine print, ask questions if something is not clear. As a general rule, any time we enter into an agreement pertaining to money or long-term associations creative professionals should consider having a lawyer look over the agreement.
Final Thoughts
Gaining financial literacy requires being intentional and proactive about educating ourselves in these areas. It also requires being willing to be vulnerable to ask questions about what we don’t know and perhaps investing in professional support or advice from time to time. Online courses, mentorship programs, and workshops can also help grow our financial knowledge. Knowledge in these areas is power and I would argue crucial to our empowerment, in our financial lives as creative professionals. Embrace the journey of financial empowerment. Be intentional about invest time in increasing your financial literacy as a creative professional. Remember that your creativity deserves to be supported by strong financial knowhow.
Where could you benefit from increasing your financial literacy as a creative professional?
Image Credit: Cylla Von Tiedemann
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