A recent HSBC survey polled around 1,100 people in Singapore to find out if they were financially fit. Participants were asked questions relating to their money habits, knowledge of financial products, planning style and the steps they take to safeguard their personal details.
The survey found that only 30 per cent of the respondents were deemed “very fit”, about 50 per cent were “moderately fit” while the remaining 20 per cent were “unfit”.
ST Invest has built on the survey questions to design a simple test. Go on and take the challenge!
Part 1: Money habits
How well do you know your income and expenses?
You have a regular savings plan
You don’t buy things impulsively
You have enough savings to last 6 months if you stop working
You always pay credit card bills in full
You always pay credit card bills by due date
You always pay utility bills on time
You have used financial products to increase the value of your assets in the past 6 months
You do not spend more than you earn
You keep an income-and-expenditure budget
Part 2: Investment knowledge
Do you know what you are putting your money into?
You know relevant financial products that benefit you
You know how to choose products that suit your needs
You know the fees before you buy such products
You know the benefits and potential risks of these products
You know to compare products before buying
You know your investment risk tolerance level
Part 3: Financial planning
Are you on your way to having good money habits? Hang in there - just one more section to go after this.
You review your financial plan at least once a year
You seek professional advice at least once a year
You review your investment portfolio at least once a year
You are prepared for your health care and medical expenses
You are prepared for emergency and unexpected expenses
You have a good financial plan for retirement
You know how much you need for retirement
You always monitor the state of your retirement savings
You always keep to your plan to increase retirement savings
You have enough to pay for each of your life goals
Part 4: Protecting your money
What are you doing to safeguard your hard-earned money? This is the last section, so get ready to discover your financial fitness.
You change digital banking password at least once a year
You have not done online banking with public Wi-Fi
You check bank statements to verify your transactions
You safeguard your bank passwords
You have not provided credit card information on unknown or unfamiliar online sites
You check messages and calls are from genuine parties before replying
You have not shared sensitive personal data through instant messaging/ social media platforms
The health of your wealth
You received 3 points for every “yes” and 0 for every “no”.
Note: This simple test adapted the questions used in the HSBC Financial Fitness Index, but it is not representative of that survey, which is more precise.