Financial Planning News

• Fail to plan for predictable events (such as education of children and retirement) and unpredictable events (such as emergencies).
• Poorly manage their personal debts. Many incur large charges and interest on their loans. And one in five respondents had used alternative methods of finance such as payday loans during the past five years. (These loans involve payments automatically being deducted from salaries.)
• Do not understand the terms of their mortgages or the interest payable on their loans.
• Lack basic numeracy and knowledge of fundamental economic principles such as the workings of inflation, risk diversification, and the relationship between asset prices and interest rates.

The report truly underlines why financial literacy is so crucial to financial wellbeing.