As much as 76 per cent of Indians do not understand key financial concepts like inflation and interest rate, lower than the worldwide average, a S&P Ratings Services survey said on Tuesday. Standard & Poor's Ratings Services Global Financial literacy Survey said in Asia, Singapore is home to the highest percentage of financially literate adults (59 per cent), followed by Hong Kong and Japan (both at 43 per cent). less than a third of adults in China (28 per cent) are financially literate.
The survey found that 76 per cent of Indian adults do not adequately understand key financial concepts, including risk diversification, inflation and compounded interest.
"This is lower than the worldwide average of financial literacy, but roughly in line with other BRICS and South Asian nations,” it said. Also about 66 per cent of adults worldwide are not financially literate.
The material gap between men and women existed in almost every country. Worldwide, there is a five-point gender gap with 65 per cent of men not being financially literate compared with 70 per cent of women, the survey said. In India, the gap was wider with 73 per cent of men and 80 per cent of women not being financially literate. The survey also found out information about consumers' familiarity with the financial products they utilise.