Don’t assume clients are financially literate

Global financial illiteracy rates are high, reports the Atlantic.

The magazine cites a study by two American economists published in the Journal of Economic Literature. The researchers distributed a survey with three basic financial questions to respondents from the U.S., Germany, Russia and other countries. No country’s respondents did better than Germany’s: 53% had a perfect score.

Read: Down with jargon

The Atlantic reports that while many are financially illiterate, the decline in job security and defined-benefit pensions means people are increasingly responsible for managing their finances.

The study also finds women and the elderly have the least financial knowledge. And, the elderly become more confident in their skills as they age, even though they aren’t becoming more savvy.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.