Improving financial literacy of the population: international experience and Russian practice
The financial aspect affects almost all spheres of life of a modern person. Financial literacy provides an opportunity to manage your financial well-being. The lack of basic financial knowledge and skills limits the ability of citizens to make the right decisions to ensure their financial well-being.
Robert and Kim Kiyosaki are spouses and business partners. Their main activity is the company RichDad (Rich Dad), which is engaged in improving the financial literacy of the population. On October 13-14, Kim Kiyosaki arrives in Russia and will speak at the Women’s Investment Forum for 2 days. Do not miss your chance to meet with a legendary person.
At the micro level, the economic consequences and threats of low financial literacy of the population are expressed in an increase in the number of financial abuses, in the accumulation of excess credit debt by the population, and in the inefficient distribution of personal savings.
At the macroeconomic level, low financial literacy restrains the development of financial markets, undermines confidence in financial institutions and government policies for their regulation, causes an additional burden on budgets of all levels, and leads to a decrease in economic growth.
The lack of enlightenment and distrust of citizens in financial markets, a lack of understanding of contractual relations, and the basic foundations of finance also hinder the development of entrepreneurship and small business: people do not know how to start a business or design a business project. Sustainable development of the economy of the Russian Federation depends not only on the introduction of more efficient production and financial technologies, but also on how much the population is able to use them.
The development of a modern market economy presupposes a broad participation of the population in long-term funded pension, insurance and mortgage schemes that help solve pension accumulation, social and health insurance, education and housing. The expansion and rational use of savings, characteristic of the middle class, provides a higher level of economic and social stability and at the same time creates the foundations for the stability of the financial system and macroeconomic balance. Active saving behavior of the population, the use of savings and insurance instruments implies a sufficiently high level of financial literacy, which allows citizens to actively interact with financial institutions, widely use pro ruits banking and insurance sector, the pension insurance system.
Financial literacy helps households of a growing middle class to effectively plan and use their personal budget, make decisions in the field of personal finances based on their long-term interests, avoid excessive personal debt, navigate the complex services and products offered by financial institutions, recognize threats and reduce fraud risks from potentially unfair market participants. In Russia, the development of financial literacy is an important area of strengthening the middle class, the saving behavior of the population as the basis of macroeconomic stability and the development of the modern financial sector.
In the long run, the place of the population’s financial literacy is determined by the increased importance of individual financial decisions in ensuring personal well-being at all stages of the life cycle — in obtaining education, creating a family, having children, providing housing for the household, changing the sphere of activity and ending work, retirement, etc. .P. An increase in the role of personal responsibility for own financial decisions has been taking place in recent decades against the background of the expansion of the consumer sector of the financial market, the growth of the diversity and complexity of financial products, the general growth of incomes and savings of the population, which makes the problem of increasing financial literacy even more relevant.
Lack of financial literacy is currently an obstacle to the development of certain financial instruments and segments of the financial market. Raising its level in Russia will help accelerate the process of implementing pension reform, reforming the banking and insurance sectors, in particular, increasing the demand for voluntary pension savings and insurance services.
An increase in the financial literacy of the population will allow for a more active development of the non-cash financial transactions sector, will support the downward trend in cash flow, which will also lead to an increase in tax collection, transparency and accountability of the financial sector.
Improving financial literacy contributes to an increase in the quality of financial services, and allows expanding the opportunities for citizens to more effectively use financial services.