Financial Literacy level is at very low level but a latest survey shows Indian’s Financial Literacy Level is much better than others. This survey from ING shows that India Ranks at no. 2 out of 10 leading nations.
- Being just better from others? If yes then enjoy you are already in top 10% Indians. (As 90% don’t even know what is Financial Literacy)
- Achieve your goals & be financially free? If yes than learn – still there is a long way to go.
Some time back financial portal Myiris interviewed me. When interviewer asked “Is there anything else you would like to share with our readers?” I was not able to stop myself to share the poor financial literacy state of our country.
I said “Financial Literacy is the key to Financial Freedom. We wish to say that Financial Literacy is very important as we miss this in our education system. We dream for a day when investor will be financial educated before he reaches his financial advisor. Being financially aware means client will understand his questions and will definitely understand the solutions. It is really painful to see when a client is mis-sold for penny benefits. And best way to avoid mis-selling is to get armored with Financial Literacy.”
Few Important Facts from Financial Literacy Survey:
- Indians turn out to be the second out of 10 leading nations in the world to have a basic financial literacy level(55%), just behind Japan.
- The survey was carried out among 5,000 consumers across ten major nations, including India, the USA, Mexico, The Netherlands, Romania, Poland, Belgium, Spain, Korea and Japan.
- The survey shows that a whopping 84% of Indians prefer buying life insurance products as compared to 54% globally.
- 87% of Indian households have an emergency fund compared to 33% globally.
- Indians borrow money only in case they have to buy a house (50 per cent) or a car (43 per cent).
- Indians do tend to get lost in sourcing good advice to become better at money.
- The more people are financially literate, the more they experience feelings of happiness,
- Overall, the survey revealed that Asians are by far the most financially literate and also eager to learn more. They actively follow their budgets and develop habits of acquiring knowledge before taking financial decisions.
- 89% of respondents — from 10 different countries — want to do a better job managing their money; 94% of Americans want to do a better job.
87% of Indian had emergency corpus of more than two months. Nothing new for us that most Indian have a “CASH FANCY” and they keep the cash in saving accounts, suitcases, almirahs, goolaks and even in pillow covers.
Globally, the problem is only 27% people admit that they do not know where to start. Others keep on postponing, do not find it interesting, do not have time or badly need help.
I would like to Share a quote from Alvin Toffler “The illiterates of the 21st century will not be those who cannot read and write but those who cannot LEARN, UNLEARN and RELEARN”. Similarly Financial Literates will not be those who know how to save but those who can achieve their financial goals & achieve financial freedom.
Do you agree with findings of this survey?? Do you feel you still have to learn??