ALMOST three-quarters of Asia’s adult population don’t have a clear grasp of key monetary ideas including inflation and risk diversification, according to a study conducted by Standard & Poor’s.

    In China, 63 percent of adults with a credit card are financially illiterate and only 28 percent of Chinese respondents were identified as financially competent, it showed.

    Singapore had the highest percentage of people in the region with a good understanding of the key concepts, at 59 percent, while Cambodia and Nepal had the lowest at 18 percent.

    “There are correlations between financial literacy, financial access and the strength of markets,” said Courtney Geduldig, executive vice president of public affairs at McGraw Hill Financial, parent of S&P Ratings.

    “Addressing financial literacy is a key strategy in building stronger, more accessible and sustainable markets around the globe,” Geduldig said.

    Financial inclusion is a challenge and an opportunity in Asia, with about 47 percent of adults in India — or 415 million people — lacking a bank account, Standard & Poor’s said.

    While the array of financial products available in Asia is growing rapidly, Standard & Poor’s said, citing China where credit card ownership has almost doubled since 2011. But people still struggle with simple concepts like interest.

    The survey also showed that 61 percent of Chinese adults don’t save for old age, 6 out of 10 Chinese adults don’t have formal savings and about 20 percent of the adult population in the country is “unbanked.” (SD-Agencies)