Filipinos have low financial IQ, says Citibank

from The Manila Times

FILIPINOS are not financially savvy enough to help them tide over rough times and plan for a comfortable retirement, a survey by Citibank N.A. showed.

In an online survey conducted in October 2007, Filipino respondents garnered a Citi Fin-Q—average of 47.8 points out of a possible 100. Citi Fin-Q is a Citibank measure of financial quotient or intelligence.

Majority or 62 percent of the 400 respondents scored less than 50. The survey also showed that if the respondents lose their jobs the next day, their current savings level on the average would last no more than nine weeks before they run out of money, regardless of their income level.

The survey, which has a margin of error of plus or minus 5 percent, was conducted to understand the consumers’ attitudes and behavior related to their financial well-being. Thirty questions were fielded, 11 of which were aimed at determining the financial quotient.

Abigail Limqueco-Chan, Citibank vice-president for marketing, said about two thirds of the respondents were below the age of 40, almost all of whom have bank accounts, while more than half hold major credit cards not necessarily issued by Citibank.

Citibank also found that majority of the respondents, especially the younger ones above 18 years old, seem to hold a positive disposition toward their quality of life and financial future since they don’t have many financial responsibilities.

However, “the reality is many don’t seem financially secure” as more than six out of 10 respondents are not confident that their savings will enable them to meet their financial commitments upon retirement, the bank said.

— Likha C. Cuevas-Miel