In Standard & Poor’s recent Global Financial Literacy Survey, it was found that a lot less women in Singapore know their way around personal finance than men.
67 per cent of men surveyed hit the threshold for being financially literate while only 52 per cent of women did so. This difference is one of the largest in the world.
While women make up the majority of university graduates, they still fall behind in financial literacy in 128 out of 143 countries. The participants were given a 5-question test over financial concepts: numeracy, risk diversification, inflation and compound interest.
The survey, done over 140 countries with 150,000 respondents, is one of the most extensive surveys done on financial literacy in history.
It also showed that Singapore has the most number of financially literate adults in Asia, at 59 per cent. Only 1 in 3 people in Asia could correctly answer the majority of questions–a number that is lower than the global average.
“We might have the highest number of financially literate people in Asia, but that’s still not enough. Basic concepts like compounding interest and percentages should be understood by all,” said Rohith Murthy, Managing Director of personal finance comparison website SingSaver.com.sg.
“Everyone should take an interest in controlling their own finances. The first step is to be aware of your expenses and where your money goes, then creating financial goals for yourself. Don’t sign up for financial products without fully understanding how it works,” he added. “Through education, Singaporeans can become more confident about making financial decisions.”
(This article is brought to you by SingSaver.com.sg)