HOW DOES THE LACK OF FINANCIAL LITERACY IN LIMA AFFECT CONSUMERS ?
Thats my documentary question. After a tone of time of brainstorming and sharing ideas with the class we got to a conclusion; our project was ready to roll. ----- ---- --- -- - -- --- ---- ------ As a class we help each other forming a united team of innovators that want the best for each other. So you get an idea of what our first question actually was: How are interest rates prone to affect people with a lack of financial literacy in big companies in Lima? When you read this question you immediately get the sense that something is wrong; you get the main theme but not the WHY. As if the question was too closed. Thats why working in team work is the solution to many obstacles in life. | Things to keep in mind :
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My mother always tells me: "Augusto, use you time wisely". I am convinced that todays class was productive since we planted the seed and it`s ready to start growing.
Interest rate: Is a charge for borrowed money, generally a percentage of the amount borrowed. In other words it`s a percent of Principal (P), paid a certain amount of times (M) per period; usually quoted per annum.
Credit card: will allow you to borrow and spend up to an agreed limit. You are then charged interest until the balance is cleared. Your spending limit - or credit limit - will be decided by the provider and depend on your individual circumstances, taking into account factors such as income and credit history. The interest you pay will be agreed before you sign for your credit card. It may not be the rate you see advertised and is at the discretion of the credit card company.
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- 40% knew how to calculate interest rates
- 31% didnt fully understand the relation between risk and reward
- Also half of the people didn't know that they can reduce their risks through portfolio diversification.
- As expected people with higher education provided the higher number of correct answers for the survey.
2011 , a survey was taken for 2254 people in Peru which 96.7% came from urban areas- 40% knew how to calculate interest rates
- 31% didnt fully understand the relation between risk and reward
- Also half of the people didn't know that they can reduce their risks through portfolio diversification.
- As expected people with higher education provided the higher number of correct answers for the survey.