{"id":42665,"date":"2015-12-14T14:25:02","date_gmt":"2015-12-14T19:25:02","guid":{"rendered":"https:\/\/staging21.finca.org\/uncategorized-en-ca\/financial-literacy-and-why-it-matters"},"modified":"2024-11-04T02:08:08","modified_gmt":"2024-11-04T07:08:08","slug":"financial-literacy-and-why-it-matters","status":"publish","type":"post","link":"https:\/\/finca.org\/en-ca\/financial-literacy-and-why-it-matters","title":{"rendered":"Financial Literacy and Why it Matters"},"content":{"rendered":"<p>In a recent report by Standard &amp; Poor\u2019s, <a href=\"https:\/\/www.mhfi.com\/corporate-responsibility\/global-financial-literacy-survey?keyfindings\" target=\"_blank\" rel=\"noopener\"><em>Financial Literacy Around the World<\/em><\/a>, the authors seek to answer a question: How financially literate are people across the globe? Financial literacy\u2019s importance is clear. An understanding of basic concepts in finance empowers people to make sound financial decisions, and without which can lead to people borrowing more and saving less. <!--more--><\/p>\n<p>\u201cFinancial literacy is a critical barrier to financial and economic participation,\u201d writes the authors of the report. \u201cBecause of a lack of knowledge about finance and financial products, many people \u2013 especially the poor and women \u2013 are not able to access banking and financial services, and are therefore kept out of financial markets.\u201d<\/p>\n<p>Globally, 33 percent of adults are financially literate, or approximately 3.5 billion people.<\/p>\n<p><a href=\"https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map.png\"><img decoding=\"async\" data-src=\"https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map.png\" class=\"size-full wp-image-12630 alignnone lazyload img-fluid\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"SP Global Financial Literacy Study Map\" width=\"904\" height=\"590\" \/><noscript><img decoding=\"async\" class=\"size-full wp-image-12630 alignnone img-fluid\" src=\"https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map.png\" alt=\"SP Global Financial Literacy Study Map\" width=\"904\" height=\"590\" srcset=\"https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map.png 904w, https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map-300x196.png 300w, https:\/\/finca.org\/wp-content\/uploads\/SP-Global-Financial-Literacy-Study-Map-768x501.png 768w\" sizes=\"(max-width: 904px) 100vw, 904px\" \/><\/noscript><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>However, financial literacy is dependent on a number of demographic factors and tends to be lower among women and the poor. About 30 percent of women are financially literate compared to 35 percent of men. In emerging economies, 31 percent of the richest households are financially literate compared to 23 percent of adults in the poorest households.<\/p>\n<p>Can <a href=\"https:\/\/finca.org\/what-we-do\/finca-services\">access to banks, mobile banking or other financial institutions<\/a> \u2013 like FINCA \u2013 help to increase financial literacy? In the last 30 years, FINCA has found that when poor people have access to financial services, they can earn more and build assets. The report found a correlation with access to financial institutions and the level of financial literacy.\u00a0 A greater percentage of banking and financial institution account holders are financially literate \u2013 about 38 percent.\u00a0 Only 25 percent who don\u2019t have access to accounts are financially literate.<\/p>\n<p>The unbanked, the report authors conclude, \u201cdo not have experience using financial products. If they used financial concepts in their daily lives, their understanding could increase with time.\u201d<\/p>\n<p><a href=\"http:\/\/www.finca.kg\/en\/category\/financial-literacy-article\" target=\"_blank\" rel=\"noopener\">FINCA Kyrgyzstan is one of several subsidiaries working to accomplish this<\/a>. In order to increase financial literacy amongst FINCA\u2019s clients and the general public, staff are teaching how to efficiently manage financial resources, how to keep track of household expenses and the importance of savings.\u00a0 Over the past three years, FINCA Kyrgyzstan has reached over 20,000 banked and unbanked people, with in-person trainings, workshops, textbooks and publications on financial concepts.<\/p>\n<p><em>To learn more about financial literacy, <a href=\"https:\/\/finca.org\/newsroom\">follow our blog for future updates<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial literacy\u2019s importance is clear. An understanding of basic concepts in finance empowers people to make sound financial decisions, and without which can lead to people borrowing more and saving less.<\/p>\n","protected":false},"author":392,"featured_media":42667,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[151],"tags":[95,100],"class_list":["post-42665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en-ca","tag-financial-inclusion-en-ca","tag-research-en-ca"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financial Literacy and Why it Matters<\/title>\n<meta name=\"description\" content=\"An understanding of finance empowers people to make financial decisions, and without which can lead to people borrowing more and saving 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