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42% of Chileans have a Low Level of Financial Knowledge

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A study conducted by Depósito Central de Valores (DCV) and Cadem also reveals that the lack of knowledge regarding interest rates has decreased by 11% in the last four years.

 

Depósito Central de Valores (DCV) and Cadem have recently launched a new version of the Financial Knowledge Index (ICF), which shows a high lack of financial knowledge in Chileans. Based on the main results, 42% of Chileans have a low level of financial knowledge, 21% high, and 37% average.

The index was obtained by measuring three main aspects: Knowledge about financial institutions, financial products, and interest rates. Financial knowledge is still marked by a strong socio-economic segmentation, established in segment C1, where half of the respondents claim to have high or average knowledge. In contrast, over half of the D and E segments claim to have poor financial knowledge or none. Also, knowledge regarding cryptocurrencies has increased by 38% over the last four years and is currently 76%.

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The report also indicated a considerable gender gap in financial knowledge. While 40% of men say to know a lot or quite enough about financial issues, 26% claim not to know anything about them. Regarding women, 26% claim to know a lot or enough, while 38% do not have any knowledge.

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As Javier Jara, Legal and Corporate Affairs Manager of DCV, explained, "the numbers provided by the study reflect the urgency in Chile to make progress in financial education. People must know about the financial services and products they can obtain and how to obtain them to have a healthy and growing economy. We must move forward by working with the main players in the field, the private and public sectors, and the academia."

The study of DCV and Cadem also proves that most Chileans do not have sufficient knowledge about interest rates. 66% say they understand how interest rates work, representing an 11% reduction from 2020. However, 61% (+20pts) know about the diversification of investments, and 71% (+19pts) claim to understand the effect of inflation on savings.

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Check the full report (Spanish only)

Here

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