Significance of financial literacy of the population to the economics of Kazakhstan

Essay

Significance of financial literacy of the population to the economics of Kazakhstan

Introduction

The financial literacy index of the population of Kazakhstan in 2022 was 39.52%. For comparison, in the Scandinavian countries, the financial literacy index is 71%. Financial literacy is a set of people's knowledge in the field of finance, which allows them to correctly assess the situation on the market and make reasonable decisions. Being financially literate today is important for any modern person. This allows you to manage your money competently, multiply your savings, and protect yourself from financial losses, fraud and financial pyramids.Financial literacy training should begin at an early age, in the family it is necessary to explain to children where money comes from, how to save it correctly and spend it wisely, how not to fall into the traps of modern scammers, what is cyber hygiene. Financial literacy lessons should be introduced in all schools, as it is carried out in the developed countries of the world. In this essay I will consider the problem of financial literacy of the population of Kazakhstan and its impact on Kazakhstan

Financial literacy certainly affects not only the level of human well-being, but also the country's economy. In a country where many people competently distribute their money, the country's economy will be stable and prosperous, as we see in Western countries. The country's market will be stable, there will be many investors in the market. All this has a positive impact on the economy of Kazakhstan and on the population of the country. And in countries where financial literacy is lower, chaos is happening. In such countries, it will not be possible to attract investors. The market will be unstable, which affects the level of well-being of the population.

According to international experts, the level of financial literacy of the population of Kazakhstan is not the lowest in the world, and among the CIS countries – in the leaders. For example, in 2017, the study was conducted by the Organization for Economic Development and Cooperation (OECD), the results were published in 2018. In the report "Levels of financial literacy in Eurasia", the average score for financial literacy in Kazakhstan according to the OECD methodology was 13 points out of 21 possible. Financial literacy training should begin at an early age, in the family: it is necessary to explain to children where money comes from, how to save it correctly and spend it wisely, how not to fall into the traps of modern scammers, what is cyber hygiene. It is important to instill in children the right financial and digital habits so that in the future they can make informed decisions about money issues and generally navigate the world of finance well. Financial literacy lessons should be introduced in all schools, as it is conducted in the developed countries of the world.But recently I came across a study that showed that teaching people financial literacy is futile until they have the means to practice. Based on research, I suggest not only teaching children financial literacy at school. But also to give a chance to practice. For example, open demo accounts for them, or give them real money so that they begin to control their financial conditions from an early age.