As the world reels from the economical shockwaves of the COVID-19 Pandemic, surveys (Moneyweb, 2020) suggest that we are unprepared for a major economical shock.
The following statistics were taken from the Organisation for Economic Cooperation and Development’s 2020 International Survey of Adult Financial Literacy.
- 42% of the 125 787 adults selected “worrying about meeting everyday expenses”;
- 40% selected their concern about their financial situation; and
- 37% selected that they are making ends meet.
The survey also included an open-ended question: “If you lost your main source of income, how long could you continue to cover your living expenses, without borrowing any money or moving to a new house?”
- 28% said a week;
- 25% said a month;
- 15% said three months;
- 18% said more than six months; and
- 14%, reported not knowing
Authors of the study suggest these responses as, “revealing of either unpreparedness to consider such eventuality or lack of resources for a financial cushion” which grows the concern given the threat of mass long-term unemployment. The survey concludes with a discussion on the financial precariousness in this increasingly unstable world is far from evenly distributed.
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Source: Moneyweb (2020)