Launched in 2010, the MasterCard Index of Financial Literacy is based on a survey of consumers across Asia/Pacific, Middle East and Africa. It comprises three major components: Basic Money Management, which examines the respondents’ skills in terms of budgeting, savings and responsibility of credit usage; Financial Planning, which assesses their knowledge of financial products, services, concepts and ability to make long-term plans for financial needs; and Investment, which indicates their basic understanding of the various investment risks, different investment products and if they have the necessary skills. The Index score is calculated from the weighted sum of the three components, with 100 as the maximum score in financial literacy and zero as the lowest possible score.
This year for the first time, the Index has been expanded to include Myanmar and Bangladesh. 27 markets now participate in the survey: Australia, New Zealand, China, Hong Kong, Taiwan, Japan, Korea, Bangladesh, Malaysia, Philippines, Thailand, Indonesia, Singapore, Vietnam, India, Myanmar, Egypt, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates, Kenya, Morocco, Nigeria, and South Africa.