How financially literate are you?

Discussion in 'Investor Psychology & Mindset' started by Perthguy, 31st Jul, 2018.

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  1. Perthguy

    Perthguy Well-Known Member

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    The Household, Income and Labour Dynamics in Australia (HILDA) Survey tells the stories of the same group of Australians over the course of their lives. Starting in 2001, the survey now tracks more than 17,500 people in 9,500 households.

    One of the most striking findings from this year’s HILDA report is the large gender divide in financial literacy. Women exhibit much lower levels of financial literacy than men.

    A series of questions assessing basic competencies in financial concepts such as inflation, portfolio diversification and risk versus return, developed by Annamaria Lusardi and Olivia Mitchell, was put to the 17,500 HILDA respondents in 2016.

    We found that, across Australia as a whole, about 50% of men correctly answered all questions, compared with only about 35% of women.

    HILDA Survey reveals striking gender and age divide in financial literacy. Test yourself with this quiz

    I wonder if users of this site are more financially literate than the general poplulation?

    I didn't find it difficult to score 5 / 5

    The average score for men was 4.1 correct answers out of five. The average score for women was 3.7 out of five.

    How did you go?
     
  2. SatayKing

    SatayKing Well-Known Member

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    Likely to be pretty *****. Don't see any need to do the comparison of how good or bad I am as I KNOW I walk on water every other Friday.

    The alternate Friday is drinking heaps of Four Pillars in order to provide the courage for the following Friday - the stuff is so strong the effect lasts as long as that.
     
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  3. EN710

    EN710 Well-Known Member

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    5/5 it's pretty easy?
     
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  4. PandS

    PandS Well-Known Member

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    5/5
    it basic maths and common sense, doubt anyone would get it wrong if you gone to school up to years 10
     
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  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I'm going to go out on a limb here and say.....yes.

    Cheers

    Jamie
     
  6. Random Username

    Random Username Well-Known Member

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    wrong.png
    4/5, but I think it's BS,

    I chose less as there is a better than average chance of going into a higher tax bracket leaving less disposable income.
     
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  7. chylld

    chylld Well-Known Member

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    I got 4/5 because I can't read instructions and didn't type in the $ sign
     
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  8. hobartchic

    hobartchic Well-Known Member

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    5/5!!! Actually, I would expect most people to struggle with that. I've got a business, accounts, interest in economics back ground. Most of my peers would struggle I think. I on the other hand, struggle to wrangle a sewing machine. In many ways, that's a more handy skill.
     
  9. Marg4000

    Marg4000 Well-Known Member

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    Wow!
    If acing that test proves financial literacy then the bar is set very low!
    Marg
     
  10. PandS

    PandS Well-Known Member

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    Most of these test are simple, they have taken fee and tax out of the equation, they are testing the general knowledge, not the exact science or exact number :)
     
  11. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I predicted the error on this question and got 5/5.
    My true answer to the question would be that you can buy more.
    Suppose that by the year 2020 your income has doubled, but the prices of all of the things you buy have also doubled. In 2020, will you be able to buy more than today, exactly the same as today, or less than today with your income?

    This is assuming you are on a good income and spend less than you earn.
    So if I’m earning 10k a week but only spending 2k, in 2020 I’ll be earning 20k and spending 4K weekly. So I’ll have an extra 16k spending money instead of only 8k, meaning I can by more ???
     
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  12. Cimbom

    Cimbom Well-Known Member

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    No because the future 16k is worth the same as 8k today
     
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  13. ttn

    ttn Well-Known Member

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    I only got 3/5. Income double but pre tax or post tax would imply different meanings. Anyways 5 questions dont think enough to determine financial literacy
     
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  14. PandS

    PandS Well-Known Member

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    No it about buying power, so now with 8K say you can buy 4000 loads of bread
    in 2020 4000 loads of bread going to cost you 16K.

    so effectively you don't have more in term of buying power, you have more in an absolute sense.

    Zimbabwe has billion in dollar their buying power is bugger all :)
     
  15. Willy

    Willy Well-Known Member

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    Or any other literacy for that matter.:D
     
  16. PandS

    PandS Well-Known Member

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    Just fun silly test don't think any serious finance savvy person take any serious note :)
     
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  17. Perthguy

    Perthguy Well-Known Member

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    I was a bit surprised only 50% of Australian males could answer 5 questions correctly.

    Then again, the number of people on this site asking if their loans are cross collateralised. It's a bit of a worry.
     
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  18. MWI

    MWI Well-Known Member

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    Sorry to disappoint the statistics but I scored 5/5 for a female. But I tend to agree with this report as I found out through conversations from a lot of mums that their partner, usually a male, is the one that takes care of finances. In our household it is reversed hence the result...?
     
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  19. Perthguy

    Perthguy Well-Known Member

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    Don't apologise. It's good that you are financially literate. Someone in your household needs to look after the finances ;)

    People always assume it is the male. It's not.
     
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  20. MWI

    MWI Well-Known Member

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    Looks like we don't represent the norm or the majority... I wonder what he would score...?
    Yes you are right not to apologise but I hope more females take responsibility....some didn't even know what the yearly bills were as husbands took care of those, really!
     
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