30% are really stupid as are 52%

In Financial competency on 02/12/2020 at 5:01 am

No I’m not talking of the 30% who die die must vote for the likes of Lim Tean.

Around 30% of people in the West get this question wrong in multiple studies:

“Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?”

• More than $102
• Exactly $102
• Less than $102
• Do not know

This question is part of three financial literacy questions

1) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?
 More than $102
 Exactly $102
 Less than $102
 Do not know
 Refuse to answer
2) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
 More than today
 Exactly the same
 Less than today
 Do not know
 Refuse to answer
3) Please tell me whether this statement is true or false. “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
 Do not know
 Refuse to answer
  1. Source: Lusardi and Mitchell (2011b)


1 More than $102

2 Less than today

3 False

Are S’poreans any better? I doubt it because we could be a lot worse

Only 48 per cent of households have signed up with a new electricity provider two years after the market was liberalised

Those who did not switch said they found it troublesome to compare prices and are worried a new provider might close down

  1. Maybe the 52% aren’t that stupid.

    There is a cheaper electricity option than any electricity provider out there.

    Who? Where?

    The original SP Services. LOL.

    No, don’t just take the default retail pricing.

    You have to opt for the Wholesale Electricity Pricing.

    With the liberalisation of electricity providers, retail like you & me are allowed to buy electricity from SP Services at WEP prices.

    In other words, we are buying electricity at similar prices as those other electricity providers, except we don’t have the middleman markup.

    Over the past 2 years, WEP has beaten all others hands down.

    Btw, I ain’t that smart. Only started using this earlier this year. Found out from someone last year who is mining crypto (need lots of cheap elec lol) but had to wait for my 1 year contract to end.

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