![]() ![]() ![]() With very little social security in India, people have to willy-nilly behave well financially. Retired persons were financial savvy, perhaps because necessity forces them to be.įor financial behaviour, the researchers found the score to be 6.65 out of 9, well above the OECD score of 5.3 out of 9. Educated and richer persons had better financial knowledge, as did those who resided in metropolises. The OECD, or the Organisation for Economic Co-operation and Development is also known colloquially as the ‘rich countries’ club.’ Respondents in the RBI study had the lowest score in their understanding of the diversification concept. The researchers found that respondents scored 3.8 out of 5 in financial knowledge, which isn’t bad at all, considering that a survey for 12 OECD countries in 2020 had a score of 4.6 out of 7. The financial behaviour of those surveyed was assessed based on how they manage their household budgets, saving behaviour, managing the cost of living and evaluating options while selecting financial products.įinancial attitude, on the other hand, was measured by the response to three specific statements: 1) You tend to live for today and let tomorrow take care of itself, 2) You find it more satisfying to spend money than to save it for the long term and 3) You are prepared to risk some of your own money when saving or making an investment. The financial knowledge tested was about basic financial concepts, such as inflation, the relationship between risk and return, portfolio diversification and about the RBI Ombudsman. While the scores for the first two parameters are decent, the survey’s respondents had a low score in financial attitude. The research studied three components of financial literacy-financial knowledge, financial behaviour and financial attitude. The study, titled ‘Financial Literacy in India: Insights from a Field Survey’, was published in this month’s RBI Bulletin. That seems to be the message from the survey on financial literacy carried out by researchers from the Reserve Bank of India. You might know a lot about finance, but that doesn’t necessarily mean you have the right attitudes towards managing your money. ![]()
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