We rank fourth in financial literacy
Local consumers rank third in region
in understanding basic investment risk
Consumers in Lebanon ranked fourth in the Middle East on MasterCard’s Financial Literacy Index, preceded only by Egypt, Saudi Arabia, and the UAE.
Financial literacy is defined as the ability for individuals to make well-informed financial decisions and to manage risk. Local consumers had an overall financial literacy score of 61 percent, similar to the regional average.
The index is based on a survey of some 11,400 adult respondents in 25 countries. The survey was conducted between April and June 2012. It covers three components: financial planning, basic money management, and investment.
The country was ranked third, behind Egypt and Saudi Arabia, in terms of ‘basic money management’. This component measures consumers’ skills in terms of budgeting, saving, and responsibile credit usage.
The country ranked in second place, behind Egypt, on the ‘financial planning’ component, which assesses the level of knowledge about financial products, and concepts, and the ability to plan for long-term financial needs.
The country had the third highest score in the ‘investment’ component, behind Qatar and the UAE. The investment component determines the basic understanding of the various risks associated with investment, different investment products, and skills required.
“While the MasterCard Index reveals that Lebanese consumers are on par with aggregate financial literacy levels in the region, it remains important to further promote financial management skills amongst consumers,” said Basel el Tell, vice president and regional manager at MasterCard.
Date Posted: Sep 24, 2012