One in four Belgians has little basic financial knowledge
A survey conducted by ING Bank shows that no less than a quarter of Belgians have hardly any basic financial knowledge. One in nine Belgians was unable to give a single correct answer to the questions in the knowledge test. The average score was 2.6 out of 5.
The questions in the survey covered topics such as risk and return, interest calculation and inflation. They were fairly simple questions with multiple-choice answers. Yet, 11 per cent were unable to give a single correct answer. One in three Belgians did prove to be financially literate. On average, men scored better than women, older people better than younger people, and higher-educated people better than lower-educated people.
ING underlines that the consequences of limited financial knowledge can be severe. In such cases, people find it more difficult to recognise fraudulent practices and are therefore more vulnerable to scams. They also experience more financial stress and have less confidence in investing, for example. A large majority, 79 per cent, of Belgians are in favour of financial education in schools.
Another remarkable result is that people with little knowledge often overestimate their own knowledge. “The risk therefore lies not only in the lack of financial knowledge, but also in the misplaced confidence that people have in their ability to correctly assess financial risks,” explains ING economist and author of the study, Alissa Lefebre. Almost one in five Belgians made a financial decision in the past year that they regret, while 22 per cent were victims of fraud resulting in financial loss.
Belgians with a high level of financial literacy perform slightly better than the average of the countries studied. At the same time, there are significantly more people in the Netherlands (50 per cent) and Germany (42 per cent) with high financial knowledge than in Belgium.
The ING survey was conducted among a representative sample of 1,002 Belgians. The same survey was also conducted in Germany, Romania, Poland, Spain and the Netherlands.
Illustration © PHOTO Kirill KUDRYAVTSEV / AFP