Mexico, pending in financial literacy

Mexico obtained 12 points out of a possible 21 in the Financial Literacy Index, which is built based on what is obtained in topics such as knowledge, behaviors and attitudes in the matter.

In its most recent quarterly bulletin on financial inclusion, the National Banking and Securities Commission (CNBV) detailed that, based on the results of the National Survey of Financial Inclusion (ENIF) 2021, Mexico obtained 4.6 points (out of a possible 7) in knowledge, 4.4 (out of 9) in behaviors and 3.0 (out of 5) in attitudes.

“In short, a total of 12 points were obtained in the 2021 Financial Literacy Index. The three sub-indices and the index can be normalized to 100, for an intuitive interpretation, with which Mexico’s score is 57,” he said.

With this score, Mexico ranked below other countries such as Peru (58 points), Germany (66), and Hong Kong (70), but above Colombia, Romania, and Italy (53 each).

“With respect to the average of the countries surveyed, the difference for Mexico is less than two points,” he said.

This index, which in Mexico is also known as Economic-Financial Competencies, is related to the basic understanding of financial concepts, financial actions that allow living with minimal financial stress, and statements of attitude towards money and planning for the future.

According to the CNBV document, the index score is higher for men with 57.7 points against 56.5 for women, the same as in urban localities with 59.1 against 53.4 in rural areas. In addition to the fact that competencies in financial education tend to be higher as the level of schooling increases.

“Financial education skills reach the highest score in the age group of 30 to 39 years,” he points out.

In financial well-being 44.1 points

On the other hand, in the Financial Well-Being Index, which is built based on questions such as, Do you have money left over at the end of the month? Does managing your income and expenses control your life? Given your economic situation, do you feel that you will have the things you want? Is there enough money to cover your expenses? And do you feel calm that your money is enough? (each of these can award from zero to four points) Mexico obtained 44.1 points from a base of 100.

This result, specifies the CNBV, places it three points below the average of the countries surveyed by the Organization for Economic Cooperation and Development (OECD) in 2020, and of countries such as Germany or Peru that obtained 54.0 and 45.5 points respectively, but above Portugal and Colombia with 44.0 and 42.5.

Here, in the same way, men obtain a higher score than women; while in most countries, young people scored highest on financial well-being.

Financial Literacy Index score for Mexico (base of 100)

• Knowledge: 4.6
• Behaviors: 4.4
• Attitudes: 3.0
• Total: 12.0

Source: CNBV

eduardo.juarez@eleconomista.mx