The findings suggest that people are more likely to manage their money day to day, than planning for the long term.

Ms. Donovan (left) and MD Mathavious at the press conference this morning, Tuesday November 22, 2011.

The report was disseminated to members of the media at a press conference held this morning Tuesday November 22, 2011 at the FSC’s conference room.

According to Elise Donovan, the literacy coordinator, many residents do not do a lot of shopping around and principally rely on the advice of sellers to help them choose which products to take out.

“This can be detrimental; if consumers end up in the hands of unscrupulous or predatory sellers. With pyramid, Ponzi scheme and other fraudulence ventures on the rise, consumers need to be informed and alert to avert being scammed. They must know the right questions to ask and what to look out for before making purchases of financial products,” she emphasised.

She also noted that 69 percent of the persons interviewed did not have a pension fund, and pointed to the fact that the Labour Code now requires employers provide pension plans for their permanent employees.

To this end, she said that is one area the FSC will focus on in educating employers to resolve the issue.

The national survey, which was conducted over the telephone from a random pool of anonymous phone numbers, was carried out between April 19 and May 13, 2011. Five hundred and thirty-five individuals over the age of 18 were interviewed.

Its objectives were to measure, using a questionnaire by the OECD International Network on Financial Education, to measure financial literacy and provide national benchmarks; compare levels of financial literacy across countries and describe levels of financial literacy in terms of key social-demographic groups and explanatory variables and identify needs and gaps.

Ms. Donovan also revealed that overall the findings suggest that “people are more likely to manage their money day to day, than planning for the long term.”

She added, “Many are having challenges making ends meet and finding it hard to save for rainy day. The corollary is that most people are trying to be responsible and live within their means, no matter how difficult. For the majority, their approach to making ends meet is to cut back on spending or do without, rather than use credit or borrow. This is reassuring and suggests that people desire to manage their money better.”

Armed with a copious amount of information, the FSC intends to sensitise the public through a publication Money Matters BVI, which will increase the public’s knowledge on financial matters, and according to the Managing Director Robert Mathavious achieving the desired outcome of creating a financially literate VI population is a long term process.

Cognizant of the fact that Money Matters BVI is unlikely to affect the high cost of living or inadequate incomes which affects money management, both Mathavious and Ms. Donovan pointed out that it will be useful tools for residents to better manage their money, choose favourable financial products and plan for the future.

Meanwhile, the FSC’s Managing Director also told journalists that the literacy report will be given to Cabinet members.