Filipinas score well in financial literacy
BY DIANE CLAIRE J. JIAO
BY DIANE CLAIRE J. JIAO
BusinessWorld Online Edition
March 9, 2011
March 9, 2011
FILIPINAS can boast of better financial literacy compared to women in other Asia-Pacific countries but their investment knowledge remains a weakness, a MasterCard survey released yesterday showed.
The Philippines was ranked seventh among 14 countries in the region, according to the payment firm’s Worldwide’s Index of Financial Literacy of Women, issued to coincide with the observance of Women’s Month.
The index, based on a survey of consumers, measured skills in basic money management, financial planning and investment.
Out of a possible 100, the Philippines scored 68.2 in overall financial literacy, higher than the regional mark of 65.7. Thailand, however, led the pack with 73.9, followed by New Zealand (71.3) and Australia (70.2). Vietnam (70.1), Singapore (69.4) and Taiwan (68.7) also ranked higher than the Philippines.
India (61.4), China (60.1), Japan (59.9) and Korea (55.9) languished at the bottom of the index. They were the only countries below the regional score for overall financial literacy.
Filipino women ranked fifth in terms of financial planning, or their knowledge of financial products and services, and their ability to make long-term plans for financial needs.
The Philippines also ranked sixth in the Asia Pacific based on basic money management, which includes budgeting, saving and responsible credit usage.
However, the country fell behind when it came to investment knowledge, which measures the basic understanding of investment risks, investment products and the necessary investment skills.
The Philippines was only ninth with a score of 55.6, lower than the region’s 56.7.
Gabriela Women’s Party Rep. Luzviminda C. Ilagan credited this to the small amounts of money women handle in the household.
"They don’t have opportunities to explore investments because all the money is devoted to the basic necessities of the family," she told BusinessWorld.
"The stock and capital markets are also perceived as the domain of men because they are thought of as more aggressive and better trained."
However, she said Filipino women still had a lot of potential in terms of improving financial literacy.
"There is an increase in women-headed households. It is no longer enough if only the man is working. When women have their own livelihood, they get the knowledge to handle money," Ms. Ilagan explained.
"Women are also heading outside the country for overseas work, and they become exposed to more sophisticated financial instruments."
MasterCard said it was committed to empowering women by improving their financial literacy and preparing them for the increasingly complex financial world.
"This new MasterCard Index has certainly provided us with fresh insights to women’s aptitude for ... managing their finances," said Georgette Tan, MasterCard Worldwide vice-president for communications in Asia Pacific, Middle East and Africa, in a statement.
"While it is encouraging to see that women across Asia Pacific have some degree of financial literacy, it is also apparent that there is still work to be done to improve levels across the board," she added.
The survey was conducted between Sept. 13 and Nov. 11, 2010 in the following countries: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, South Korea, Singapore, Taiwan, Thailand and Vietnam.
The index, based on a survey of consumers, measured skills in basic money management, financial planning and investment.
Out of a possible 100, the Philippines scored 68.2 in overall financial literacy, higher than the regional mark of 65.7. Thailand, however, led the pack with 73.9, followed by New Zealand (71.3) and Australia (70.2). Vietnam (70.1), Singapore (69.4) and Taiwan (68.7) also ranked higher than the Philippines.
India (61.4), China (60.1), Japan (59.9) and Korea (55.9) languished at the bottom of the index. They were the only countries below the regional score for overall financial literacy.
Filipino women ranked fifth in terms of financial planning, or their knowledge of financial products and services, and their ability to make long-term plans for financial needs.
The Philippines also ranked sixth in the Asia Pacific based on basic money management, which includes budgeting, saving and responsible credit usage.
However, the country fell behind when it came to investment knowledge, which measures the basic understanding of investment risks, investment products and the necessary investment skills.
The Philippines was only ninth with a score of 55.6, lower than the region’s 56.7.
Gabriela Women’s Party Rep. Luzviminda C. Ilagan credited this to the small amounts of money women handle in the household.
"They don’t have opportunities to explore investments because all the money is devoted to the basic necessities of the family," she told BusinessWorld.
"The stock and capital markets are also perceived as the domain of men because they are thought of as more aggressive and better trained."
However, she said Filipino women still had a lot of potential in terms of improving financial literacy.
"There is an increase in women-headed households. It is no longer enough if only the man is working. When women have their own livelihood, they get the knowledge to handle money," Ms. Ilagan explained.
"Women are also heading outside the country for overseas work, and they become exposed to more sophisticated financial instruments."
MasterCard said it was committed to empowering women by improving their financial literacy and preparing them for the increasingly complex financial world.
"This new MasterCard Index has certainly provided us with fresh insights to women’s aptitude for ... managing their finances," said Georgette Tan, MasterCard Worldwide vice-president for communications in Asia Pacific, Middle East and Africa, in a statement.
"While it is encouraging to see that women across Asia Pacific have some degree of financial literacy, it is also apparent that there is still work to be done to improve levels across the board," she added.
The survey was conducted between Sept. 13 and Nov. 11, 2010 in the following countries: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, South Korea, Singapore, Taiwan, Thailand and Vietnam.
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