Are Mauritians Financially Literate?

According to the National Financial Educators Council, financial literacy can be defined as: “Possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals.” It deals with the ability to make informed judgements and to take effective actions regarding the management of money. From an individual perspective, a financially literate individual will more effectively understand financial choices, savings for retirement or take precautionary measures in case of emergency, sickness, job loss and so on. From a wider perspective, when consumers are more knowledgeable, markets become more competitive and efficient. The Financial Services Commission (FSC) Mauritius is mandated under the Financial Services Act 2007 to promote public understanding of the financial system including awareness of the benefits and risks associated with different kinds of investment. The recent alleged Ponzi-like schemes or investment scams whereby high returns in a short space of time were promised, could have been avoided.