Saving grace: Indians fare better in money management

When it comes to managing finances, Indians are ahead of citizens of United States, Japan, South Korea and some other developed countries, says the ING Consumer Resourcefulness Survey. Also, Indians turn out to be the second, out of 10 leading nations in the world, to have a basic financial literacy just behind the Japanese.

“The survey shows that Indians are better at managing their finances than most of the other countries in the survey, including being better prepared for their various life stages, especially retirement,” said Uco Vegter, chief marketing and strategy officer, ING Life . “However, they do tend to get lost in sourcing good advice to become better at money.”

The survey, conducted by ING Group, in association with the research consultancy firm Epiphany, was carried out among 5,000 consumers across 10 nations.

“Majority of Indian consumers have shown better skills in managing their household financial budget and are confident of facing any financial impediments in future, as compared to citizens of 9 other countries,” said the survey.

The survey shows a staggering 84% Indians prefer buying life insurance products compared to 54% globally and a similar percentage of Indians believe in maintaining a household budget with focus on savings. Indians are much risk averse in case of borrowing money. While average Indians manage their finances in a much organised manner, they borrow money in case of needs such as buying a home (50%) and a car (43%).

Source: HT Mumbai 14 Jan, 2011