While we were still busy thinking about the literacy rate of India, a latest survey has suggested about the failing financial literacy of the country. The results are quite disturbing!
A recent survey conducted by Standard & Poor’s Rating Services Global Financial literacy Survey today has suggested that about 76 percent of Indians are not financially learned. Understanding the basic concepts like inflation, interest rate, risk diversification, compounded interest and simple interest is difficult for the majority of Indians. As far as the financial literacy is concerned in Asia, Singapore unites the highest of 59 percent literate adults. After Singapore, Hong Kong and Japan follows the list.
What the survey has to say about Indians!
The lack of understanding in basic financial concepts and terminology (that most of the Indian’s trigger while financial dealing) has landed India to this spot. Further, giving a gender-based classification, the survey has also suggested that in India, about 73 percent male and 80 percent female are not financially literate. Due to this form of illiteracy, the country has been facing difficulty in accessing consumer-based information.According to the survey, the rapid growth of financial product in the Asian countries has urged the significance of superior financial literacy throughout the region.
Urging the importance of investment, the survey has suggested that only 14 percent of Indian adults are formally involved with a financial institution. The weak financial skills are also reflected here!
It is notable that S&P Survey interviewed about 1.5 individuals across 140 countries to finally settle for this result. During the entire survey, only 14 percent of Indian’s answered the questions correctly.