The financial literacy rate of adults in India is 27 per cent, which is lower when compared to countries like the United Kingdom (67 per cent), Singapore (59 per cent), and the US (57 per cent), reveals a global survey by Streak, a teenage-focussed Neobank.
The online financial quiz for school students, Financial Literacy Championship also conducted by Streak highlighted that 16.7 per cent of Indian children had an average passing score in the quiz. The results show that respondents from South India performed the best with an average score of 47.86 per cent and east Indians underperformed with an average score of only 39.41 per cent. City-wise performance shows that teens from Gurgaon had the highest average score of 52.3 per cent and Jaipur has the lowest average score of 38.41 per cent.
The quiz garnered more than 3000 signups from 100+ schools across the country between the age group of 11-17 years. The quiz tested the school students on topics like banking products, currency, personal finance, payment systems, credit and loans, and investment.
As many as 45 per cent of the students do not know how to create a budget, and approximately 60 per cent of the students do not understand investments, the concept of risk to reward, or the time value of money. More than 50 per cent of the students scored below-average on topics like budgeting, investments, diversification, the risk to return of investments. On the flip side, students had a marginally better understanding of topics like interest calculation, banking products, and the basics of inflation.
“The quiz was an eye-opening event for everyone working at Streak. It strengthened our belief in our goal and vision as a company – to build a solution that will enable the next generation to get smart with money and make prudent and educated financial decisions in the future. Personal finance is a soft skill and we are here to let teens experience the learning process that is different from how they learn math or physics,” said Mitul Mehta, Co-founder, Streak.