The Swedish Financial Supervisory Authority has published a survey showing wide disparities in consumers’ understanding of interest, inflation and risk diversification. Only 46% of respondents aged 18 to 79 answered all three basic questions correctly, while nearly three in 10 answered no more than one correctly. The authority said the findings will inform its supervision and stressed that firms must account for consumers’ differing needs and capabilities rather than expect them to navigate complex products and services unaided. Knowledge was generally lower among adults aged 18 to 29 than among those aged 30 to 59, while respondents with higher education answered more questions correctly. Gender gaps were also pronounced. For example, 71% of men correctly answered the compound interest question, compared with 52% of women, while the respective figures for risk diversification were 83% and 68%. Women more often selected “do not know” and rated their financial knowledge lower, indicating differences in both knowledge and confidence. The results also identified a gap between recognizing an economic concept and understanding its personal financial effect. Although 87% knew that high inflation means rapidly rising living costs, only about three-quarters understood that savings lose purchasing power when the interest rate is below inflation. The survey collected 1,726 responses from a sample designed to represent Sweden’s population by gender, age and geography.
Swedish Financial Supervisory Authority finds only 46% of adults answer three basic financial questions correctly
The Swedish Financial Supervisory Authority found that only 46% of adults surveyed correctly answered three basic questions on interest, inflation and risk diversification. Results varied substantially by age, education and gender, with gaps in both knowledge and confidence. The authority said firms must design consumer protection around customers’ actual needs and capabilities.