Financial literacy levels in Hong Kong show improvement and gaps
The IFEC issued on 23 March 2020 the Financial Literacy Monitor 2019, a survey that measures financial literacy across three areas: Knowledge, Attitude and Behaviour. This is part of an international comparison study coordinated by the OECD International Network on Financial Education (OECD/INFE), a repeat of a similar exercise of a 30-economy comparison study conducted in 2015. Please see the related press release.
Hong Kong adults have shown improvement in overall financial literacy levels, bolstered by better financial knowledge and attitude scores compared to four years ago. However, financial behaviour scores slipped, mainly because of less considered purchases, less watchful monitoring of personal finance and fewer individuals who set long-term goals and strived to achieve them.
Comparing patterns across generations, the more mature generation plans and manages their finances more prudently, while the younger generation tends to put financial planning aside and is more likely to overspend and end up in debt.
The findings point to the need for more financial education efforts among the younger generation and towards driving behavioural change.