A poll among 5,500 people conducted by ING Investment Management across 11 European countries found that Greek retail investors have the best financial literacy rates.
Questions design to reveal participants' understanding of investment issues suggested only 14% of Europeans have ‘good' or ‘excellent' financial literacy, with 20% having poor skills here. Some 66% have ‘basic' skills. Greece came top with 24% ranked as having ‘excellent' or ‘good' financial literacy, followed by the UK, at 22%.
Only 7% of people in Turkey had good or excellent financial literacy scores - the lowest of the 11 countries surveyed
The study was based on 13 questions on personal finance issues. On average Europeans answered 6.2 of the 13 questions correctly compared to 6.8 in 2010 so financial literacy is getting worse, a report accompanying the study said.
Questions were based on four areas:
o Financial future (related to saving for your future)
o In and around the house ( related to mortgage payments, credit cards and savings)
o Savings (questions related to savings accounts)
o Investments (questions related to stocks and shares)
The percentage of Europeans who answered the questions correctly in each section was: Financial future: 52%; In and around the house: 45%; Savings: 41% and Investments: 50%
European financial literacy league table
Today on Investment Europe
Mark Phelps, head of Concentrated Global Growth at AB, will join InvestmentEurope's Pan-European Fund Selector Summit in Hamburg.
Richard Halle and Daniel White are set to take part in the InvestmentEurope Autumn Pan-European Fund Selector Summit, which takes place in Hamburg 15-17 October.