The financial literacy level of adults in our country has decreased compared to two years ago. In particular, the understanding score of how inflation affects real purchasing power has significantly dropped. Additionally, the habit of regularly checking financial status and setting long-term goals remains lacking.
According to the '2024 National Financial Literacy Survey' announced on the 29th by the Bank of Korea and the Financial Supervisory Service, the financial literacy score for adults in our country last year was calculated at 65.7 points. This is a slight decrease from 66.5 points in 2022, but it is higher than the OECD average (62.7 points as of 2023).
Financial literacy is measured across three areas: ▲ financial knowledge ▲ financial behavior ▲ financial attitude. The domestic survey was conducted from Sept. 2 to Nov. 1 of last year among adults aged 18 to 79.
In terms of respondent characteristics, financial literacy was relatively low among those in their 20s and 70s, as well as among those from lower income and education backgrounds. Conversely, the scores for those aged 50 to 60, who are more interested in retirement preparation and asset management, increased, expanding the gap between generations and classes.
Among the financial knowledge items, the understanding score of how inflation affects real purchasing power fell from 78.3 in 2022 to 56.6 last year, dragging down the overall financial literacy scores. An FSS official explained, "This score rose significantly in 2022 when the inflation rate was high, but has now returned to normal levels in this survey, suggesting that the decline in public interest in inflation due to the slow down in last year's inflation rate may have been reflected in the results of this survey."
Among financial behavior items, the scores for regular financial status checks (43.4 points) and setting long-term financial goals (42.5 points) were also low. In particular, the scores for financial checks (33.2 points) and financial goals (36.1 points) among young adults in their 20s fell significantly compared to 2022 (55.8 points and 48.0 points). For adults with long-term financial goals, the most important financial goal was purchasing a dwelling (25.8%), followed by asset accumulation (19.9%) and marriage funds (13.9%).
Digital financial literacy increased by 2.4 points to 45.5 points compared to two years ago. In particular, the digital financial literacy of those aged 70 and older, as well as those from lower income and education backgrounds, significantly improved, narrowing the gap somewhat.
The FSS and the Bank of Korea stated, "We will increase the accessibility of financial education for the elderly and vulnerable groups, and provide education content tailored to their needs," adding, "For the youth, we will strengthen one-on-one financial counseling and expand online education like the e-Financial Education Center to enhance practical financial capabilities." They also noted, "We will ensure that early financial education is well established in schools by solidifying the one-company-one-school financial education initiative and institutionalizing finance and economics subjects."