South Africa came last in a 2016 poll of 30 countries and economies – drawn from Africa, Asia, Europe, Australasia, North America and South America – when measuring financial knowledge.
According to the Organisation for Economic Co-operation and Development (OECD), adults in many countries around the world display low levels of financial knowledge, fail to engage in financial behaviours that could improve their financial security, and have financial attitudes oriented towards the short-term.
The OECD/INFE International Survey of Adult Financial Literacy Competencies questioned 50,000 people including 2,813 South Africans aged between 18 and 79.
It found that average levels of financial knowledge show room for improvement. On average, just 56% of adults across participating countries and economies achieved a score of at least five out of seven, considered to be the minimum target score.
South Africa was at the bottom of the list, scoring around 30%.
Only 42% of adults across all participating countries and economies are aware of the additional benefits of interest compounding on savings, and only 58% could compute a percentage to calculate a simple interest on savings.”
