Financial literacy in Singapore slumps

Category: Basic Money Management Published: Friday, 17 April 2015 Written by Admin

MasterCards financial literacy score is a measured through a weighted sum of three components: basic money management, financial planning and investment.

Myanmar scored higher than its peers in the savings category of Financial Planning, which the study attributed to the practice of saving amid a lack of social security benefits.

On the flip side, Japan was the biggest spender of savings and retirement funds. Organization for Economic Cooperation and Development statistics show that Japans household savings rate is around 0.6 percent of disposable household income, compared with 9.3 percent and 5.3 percent in Australia and South Korea, respectively.

Under the financial planning component, most of Asia Pacific countries scored highly under Save Regularly but have low knowledge of Retirement funds needed.

The lack of retirement planning should cause particularly concern, said Seshadri. It is not enough to provide access to financial services, we must ensure that everyone knows how to save, budget and invest so that their well-being can be secured over the long term.

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