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India is ranked lowest in basic money management skills among Asia-Pacific countries according to MasterCard’s latest Index of Financial Literacy. India scored 50 index points down from 55 index points in the 2012 H1 survey. New Zealand retained its top ranking in basic money management with the index at 77 points.
On overall financial literacy, New Zealand continued to rank number one with a score of 74 index points, ahead of Singapore (72 index points) and Taiwan (71 index points). India and Japan were at the bottom with 59 index points and 57 index points respectively, MasterCard said in a statement.
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Myanmar ranked top in terms of financial planning with the highest index score of 88 index points, up 2 index points from 2012 H2, which involves savings and planning for the unexpected and retirement. India also showed notable improvements from 72 index points in 2012 H1 to 76 index points in the current wave of the survey. However it is still among the bottom 5 in the Asia-Pacific region.
In terms of investment knowledge, Asia-Pacific’s overall index score dropped marginally from 59 index points in the previous survey to 58 index points. China topped the ranking with an index score of 68 index points, up 3 index points from the previous survey. India showed a slight improvement with a score of 57 index points compared to 55 index points in the previous survey.
The survey found a positive correlation between those over 30 years old. Respondents in this demographic tended to have higher levels of financial proficiency in all countries except India.
Ari Sarker, division president, South Asia, MasterCard said, “Even though India’s overall index is low, it is heartening that the country has showed improvement on the parameter of financial planning. Overall however, the index highlights clear gaps in the financial literacy space and the need to inculcate better budgeting, savings and responsible credit habits.”
