It found that average levels of financial knowledge show room for improvement. On average, just 56% of adults across participating countries and economies achieved a score of at least five out of seven, considered to be the minimum target score.<\/p>\n
South Africa was at the bottom of the list, scoring around 30%.<\/p>\n
Only\u00a0 42% of adults across all participating countries and economies are aware of the additional benefits\u00a0 of interest\u00a0 compounding on savings, and only 58% could compute
\na percentage to calculate a simple interest on savings.<\/p>\n
Only about two in three adults \u2013across OECD and all participating countries and economies \u2013 were aware that it is possible to reduce investment risk by buying a
\nrange of different stocks.<\/p>\n
Low levels of numeracy may be further reducing the ability of individuals to make sound\u00a0 decisions by applying financial knowledge.<\/p>\n
Read: This is what stressed-out South Africans are willing to sacrifice to cut costs<\/strong><\/a><\/p>\n Responses to a question asking people to calculate\u00a0 the\u00a0 balance of an account after 2%\u00a0 interest has been added, suggest that a sizeable proportion of the population of many countries finds it difficult to apply, OECD said.<\/p>\n OECD stressed that financial knowledge is an important component of financial literacy for individuals, to help them compare financial products and services and make appropriate, well-informed financial decisions.<\/p>\n “A basic knowledge of financial concepts, and the ability to apply numeracy skills in a financial context, ensures that consumers can act\u00a0 autonomously to manage\u00a0 their financial matters and react\u00a0 to news and\u00a0 events\u00a0 that\u00a0 may\u00a0 have\u00a0 implications for their\u00a0 financial\u00a0 well-being,” it said.<\/p>\n On average, a third\u00a0 (34%) of respondents across participating countries and economies Worryingly, just under half of respondents from SA reported that their income did not always cover their living costs, while around a third of respondent said they borrowed to make ends meet.<\/p>\n In South Africa, only one in two (48%) respondents agreed that they pay their bills on time.<\/p>\n See the full report here<\/a><\/em><\/p>\n How many South Africans can survive a R10,000 financial emergency<\/strong><\/a><\/p>\n Debt shock for South Africans as tough economy bites<\/strong><\/a><\/p>\n![\"oecd-finance\"](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/10\/oecd-finance.jpg\")
<\/a><\/p>\n![\"oecd-budget\"](\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/10\/oecd-budget.jpg\")
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\nhad been unable to make ends meet at some point in the previous 12 months.<\/p>\nMore on South Africa<\/h3>\n