Financial literacy hits 40pc in Bahrain

At least 40 per cent of the residents in Bahrain are financially literate, according to a study by a high profile financial service company. 

The recently published Standard & Poor’s Ratings Services Global Financial Literacy Survey noted that 40pc of Bahrain residents are financially literate, while 38pc of UAE residents and 31pc of Saudi Arabia residents also crossed the milestone. 

Kuwait topped the list among GCC nations with 44pc of residents financially literate.  

The study assessed people’s knowledge pertaining to saving, investing or borrowing money. 

“Without an understanding of basic financial concepts, people are not well equipped to make decisions related to financial management. People who are financially literate have the ability to make informed financial choices regarding saving, investing, borrowing, and more,” the research note read. “Financial knowledge is especially important in times where increasingly complex financial products are easily available to a wide range of the population.

For example, with governments in many countries pushing to boost access to financial services, the number of people with bank accounts and access to credit products is rising rapidly,” researchers behind the report stated, “moreover, changes in the pension landscape transfer decision-making responsibility to participants who previously relied on their employers or governments for their financial security after retirement.”