Analysis of The Bahamas Financial Literacy Survey 2018

Published: Wednesday May 16th, 2018

This report summarises the results of the Central Bank of The Bahamas’ Financial Literacy Survey. It also establishes a framework for both promoting financial literacy in The Bahamas and benchmarking progress in this area going forward.

Overwhelmingly, the survey found that knowledge of financial products and concepts has not translated into the same level of positive changes in personal behaviour. There is particularly scope to educate Bahamian households about longer-term savings and investment instruments, such as: stocks, bonds and mutual fund products, thereby extending the knowledge base beyond the standard basic deposit and credit services provided by banks.

The population is almost evenly divided between persons who approach savings as a residual outcome—what is left over after spending decisions have been made—versus the more advisable practice of saving as an upfront priority. Put simply, approximately half of the population reportedly “spends now then saves later”; the other half saves before spending.

From the survey results, this report focuses on three key aspects of financial literacy—as noted in the G20/OECD survey of its member countries–namely, financial knowledge, financial behavior, and attitudes towards longer-term financial planning.

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