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Financial literacy: World's top 20 nations, India lags
Indians are among the least financially literate people across the globe with youngsters and women struggling most with their finance knowledge due to lack of discussions within the families on money management issues, says a report by credit card firm Visa.
As per the 'Global Financial literacy barometer', India is ranked 23rd among the 28 countries surveyed, with 35 per cent of its population termed financially literate.
More than 70 percent of survey respondents cannot endure a personal economic emergency spanning more than three months.
Moreover, the survey found that the average savings set aside by Indians for an emergency is 1.9 months – close to the survey average of 2 months.
Chinese respondents were the best at saving, with an average of 3.9 months of expenses saved. Pakistani respondents had the least saved, with 0.8 months of expenses set aside.
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Financial literacy: World's top 20 nations, India lags
1. Brazil
Financial literacy: 50.4%
Brazil tops the financial literacy chart. Brazilians believe that schools should start financial education at the age of nine. Brazil topped the list of places that parents talk with their kids about money, says the Visa's International Financial Literacy Barometer.
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Financial literacy: World's top 20 nations, India lags
2. Mexico
Financial literacy: 47.8%
Mexicans talk with their kids about money 42 days a year, on average, and Brazilians 38. American families talk with their kids about finances 26 days a year.
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Financial literacy: World's top 20 nations, India lags
3. Australia
Financial literacy: 46.3%
More than half of the citizens Australia cannot financially survive a personal economic emergency lasting more than three months.
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Financial literacy: World's top 20 nations, India lags
4. United States
Financial literacy: 44.6%
In the US, the average person had 2.9 months of expenses saved. More than half of the citizens in the United States cannot financially survive a personal economic emergency lasting more than three months, says the Visa's International Financial Literacy study.
The United States has the worst opinion of its teenagers' money management skills, with 70.5 per cent of respondents saying that U.S. teens don't understand money management basics.
54% of respondents said that they follow a budget closely or most of the time. 44.4% said that they didn't have a budget.
High-income and low-income respondents had similar rates in terms of failure to budget, with 24.8% of those earning under $20k per year and 24.7% of those earning over $75k per year saying they did not maintain a budget.
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Financial literacy: World's top 20 nations, India lags
5. Canada
Financial literacy: (43.8%)
Among individuals across the globe who report that they do not have enough resources to cover a personal emergency lasting less than three months, a significant percentage fall into high-income categories.
In Canada, for example, 39 percent of individuals with less than three months' worth of living expenses saved fall into the high-income category, while 34 percent fall into the low-income category.
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Financial literacy: World's top 20 nations, India lags
6. New Zealand
Financial literacy: 43.7
More than half of the citizens in New Zealand cannot financially survive a personal economic emergency lasting more than three months.
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Financial literacy: World's top 20 nations, India lags
7. Japan
Financial literacy: 42.3%
People in Japan had an average of more than 3 months of expenses saved.
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Financial literacy: World's top 20 nations, India lags
8. Belarus
Financial literacy: 41.9%
More than 70 percent of survey respondents in these countries cannot endure a personal economic emergency spanning more than three months.
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Financial literacy: World's top 20 nations, India lags
9. Thailand
Financial literacy: 41.7%
In Brazil, for example, more than half of the people surveyed believe government and school-supported financial education should begin before children reach the age of nine. Other high-ranking countries in this regard include Morocco and Thailand.
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Financial literacy: World's top 20 nations, India lags
10. Malaysia
Financial literacy: 41.7%
More than 70 percent of survey respondents in Malaysia cannot endure a personal economic emergency spanning more than three months.
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Financial literacy: World's top 20 nations, India lags
11. United Arab Emirates
Financial literacy: 40.8%
When it comes to speaking with children about finances, some of the highest-ranking countries include Brazil, Lebanon, Pakistan and the UAE.
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Financial literacy: World's top 20 nations, India lags
12. Lebanon
Financial literacy: 40.3%
When it comes to ensuring that their children will be financially savvy, parents from the most economically stressed situations are among those spending the most time talking with their children about money management, budgeting, saving, responsible spending and debt.
When it comes to speaking with children about finances, some of the highest-ranking countries include Lebanon.
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Financial literacy: World's top 20 nations, India lags
13. Taiwan
Financial literacy: 39.9%
Asian respondents have the best chance of surviving a personal financial struggle.
In Hong Kong and Taiwan, nearly 60 percent of survey respondents could survive a personal economic downturn lasting more than three months, and a third or more could survive a personal economic emergency that spanned more than six months.
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Financial literacy: World's top 20 nations, India lags
14. Egypt
Financial literacy: 39.4%
Egypt is ranked 7th in terms of people planning a household budget. Around 48% people said they have a planned household budget.
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Financial literacy: World's top 20 nations, India lags
15. Bosnia
Financial literacy: 39.1%
In Bosnia, 41.7% people said they have a planned household budget.
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Financial literacy: World's top 20 nations, India lags
16. China
Financial literacy: 38.6%
In China, about half of respondents could survive a personal financial calamity lasting six months or longer.
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Financial literacy: World's top 20 nations, India lags
17. Hong Kong
Financial literacy: 38%
In Hong Kong, nearly 60 percent of survey respondents could survive a personal economic downturn lasting more than three months, and a third or more could survive a personal economic emergency that spanned more than six months.
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Financial literacy: World's top 20 nations, India lags
18. Saudi Arabia
Financial literacy: 38%
Saudi Arabia ranks top among nations where people plan a household budget.
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Financial literacy: World's top 20 nations, India lags
19. Russia
Financial literacy: 37.4
In Russia, there are more individuals in the high-income category who have less than three months of expenses saved than there are in the low-income category.
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Financial literacy: World's top 20 nations, India lags
20. Serbia
Financial literacy: 38%
In Serbia, individuals in the low-income category outpace savers in all other income categories.
The situation is worse in countries such as Indonesia, Lebanon, Pakistan and Serbia, where only 13 to 14 percent of the population could endure a personal economic emergency lasting more than three months.