Half of consumers spend all of their income

At least 50 percent do not keep record of spending

More than half of the local population spends all of its monthly income, said a survey published by the ‘Institut des Finances’ Basil Fuleihan. The survey is part of ‘Measuring Financial Capability and Literacy’, a project implemented by the institute in collaboration with the World Bank.

The initial results showed that 63 percent of the Lebanese stated that their income is hardly sufficient enough to cover even the basic living requirements, including food.

The survey said that half of the people do not have a monthly spending plan, and that a similar portion do not keep record of their expenditures.

A recent survey published by MasterCard said local consumers have an overall financial literacy score of 61 percent, similar to the regional average. MasterCard’s ‘Financial Literacy Index’, published in September, ranked Lebanon in fourth place regionally, behind Egypt, Saudi Arabia, and the UAE.

The survey, conducted between April and June 2012, covers three components: Financial planning, basic money management, and investment.

Lebanon came in third place in terms of ‘basic money management’, which measures consumers’ skills in terms of budgeting, saving, and responsible credit usage. It ranked second on the ‘financial planning’ component, which assesses the level of knowledge about financial products, and the ability to plan for long-term financial needs.

The country came in third place in the ‘investment’ component, which measures the basic understanding of the various risks associated with investment, different investment products, and skills required.