Only 25 percent of Filipino adults are financially literate, a Standard & Poor’s (S&P) Ratings Services survey found, highlighting the challenges facing the goal of boosting access to financial services.
An S&P Global Financial Literacy (FinLit) Survey conducted last year found country financial literacy rates ranging from 13 percent to 71 percent among 143 economies, with Yemen at the bottom and Denmark, Sweden and Norway sharing the top spot.
Globally, only one in three adults, or 31 percent, showed an understanding of basic financial concepts such as numeracy, risk diversification, inflation and compound interest (savings and debt.)
“Although financial literacy is higher among the wealthy, well educated, and those who use financial services, it is clear that billions of people are unprepared to deal with rapid changes in the financial landscape,” the survey said.
“Governments are pushing to increase financial inclusion by boosting access to bank accounts and other financial services but, unless people have the necessary financial skills, these opportunities can easily lead to high debt, mortgage defaults, or insolvency,” it added.
“This is especially true for women, the poor, and the less educated—all of whom suffer from low financial literacy and are frequently the target of government programs to expand financial inclusion.”