Malaysians may not have better understand of personal finance, says Citi Fin-Q

Citi Financial Quotient survey has revealed that many Malaysians may not totally understand the importance and benefits of personal finance, investing wisely and planning for retirement.

Based on the overall results posed in 11 key financial subject areas, the results from Malaysia have showed an average Citi Financial Quotient (Fin-Q) score of 49 points out of a possible 100 points, that is, 59% of the Malaysians surveyed scored 49 points and below. This clearly indicates that there is room for improvement.

The Citi Fin-Q survey, which comprised 400 online interviews of 30 questions each, was rolled out to determine the level of understanding amongst Malaysians about personal finance and their financial practices. Citibank has started to roll out its Asia/Pacific Fin-Q program with country surveys already conducted in Indonesia, Philippines and Australia.

The Citi Fin-Q survey found that in the area of personal finance only 28% of the respondents kept to their budgets, 37% saved while 46% tried to save and budget. In terms of the investing habits of Malaysians, 35% felt they had a good or very good understanding of money management and personal finances, 37% knew about the subject and 55% had a good idea what to do with six months worth of their salaries.

On the other hand, about 60% were not confident with their retirement savings, with more females expressing concerns over this. Only 22% of respondents had a formal retirement plan while more than one quarter had no idea or had not started a retirement plan. And, 45% believed they would receive financial assistance from their children.

Timothy Johnson, vice president of marketing and head of segment for the global consumer group at Citibank Berhad, said: Citi carried out this survey because we believe financial planning is no longer an option in the current dynamic economic and social environment. We need to understand the importance of budgeting, investment options and saving for our retirement. It should be a priority for any individual that enters the job market.