Filipino women are financially literate, says study

MANILA, Philippines - Just how much do women across AsiaPacific know about managing finances? MasterCard Worldwide’s inaugural Index of Financial Literacy highlights that women across Asia-Pacific are financially savvy to some extent, in particular among the over-30, married, working group, but that the level of financial literacy in women can be raised further, especially among the younger generation.

Thai women topped the Financial Literacy Index with an index score of 73.9. They had the highest scores in financial planning (87) and investments (69.3), outshining their peers in the other 13 Asia-Pacific markets surveyed. Also noteworthy were Vietnamese women, who took fourth place, with an overall Index score of 70.1.

Likewise demonstrating a high financial literacy were Filipino women, who ranked seventh with an overall Index score of 68.2. In contrast, developed markets Korea (55.9) and Japan (59.9) made up the lower spectrum of the Index.

Of the three components that make up the survey, women across Asia-Pacific as a whole scored the best in financial planning (74.6), followed by basic money management (63.9) and investment (56.7).

Filipino women showed better understanding in financial planning – ranked fifth with a score of 79.2 for financial planning, and basic money management – ranked sixth with a score of 66.6. The Filipinas did not do as well for investment, posting a score of 55.6 ranking ninth.

Apart from the Philippines, other developing markets like Indonesia (66.5) and Malaysia (66) were also in the index top 10, outperforming their counterparts in India, China, Japan and Korea.

The most populous developing markets in the world, India (61.4) and China (60.1) reflected a lower Financial Literacy score among women. Chinese and Indian women are particularly weak in basic money management (54.4 and 58.8), near the bottom of the ranking for that component in Asia/Pacific. While, Japan and Korea are the only two markets in Asia-Pacific with a Women’s Financial Literacy Index score that falls below 60.

The MasterCard Index of Financial Literacy is based on a survey of consumers from 24 markets across Asia-Pacific Middle East Africa (APMEA). It comprises three major components: Basic money management, which examines the respondents’ skills in terms of budgeting, savings and responsibility of credit usage; financial planning, which assesses their knowledge of financial products, services, concepts and ability to make long-term plans for financial needs; and investment, which indicates their basic understanding of the various investment risks, different investment products and if they have the necessary skills.