So a few days ago, I came across an interesting article on Quartz. Apparently, two-thirds of the world can’t pass this five question financial literacy test. Go on ahead and try it out. (link here)

The study was commissioned by McGraw-Hill financial and you can check out the full findings here.

I was pretty curious about where Singaporeans would stand in the ranking and so I went digging around the full report. Unsurprisingly, Singapore 59% in terms of Adults who are financially literate. (page 24 of the report) This means that 6 in 10 adults in Singapore are considered financially literate. Relative to the rest of the world, we aren’t in a bad place.

From the study, it also seems that there is a strong correlation between how developed a country is and the level of financial literacy (i.e. a link between GDP per capita and the financial literacy score) which probably explains why Singapore as an economy did well. What the study doesn’t say is whether the findings extend to the Singaporeans alone or whether they include the foreign working community. If it does, then the group of skilled foreign workers could possibly skew the financial literacy score upwards.

I wouldn’t pay ourselves on the back too quick though given Singaporeans track record for investing in rubbish like gold buyback schemes, structured products and land banking. Maybe a little knowledge is a dangerous thing.

 

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