HOW DO DIFFERENT SOCIO-ECONOMIC FACTORS DETERMINE FINANCIAL DECISION-MAKING BEHAVIORS THAT SHAPE THE LEVEL OF FINANCIAL LITERACY IN KAZAKHSTAN?

Abstract. Financial literacy is a combination of knowledge and skills in managing money and other financial instruments. This paper examines how different socio-economic factors influence financial literacy of people in Kazakhstan. Furthermore, this paper conducts deep and detailed research into aspects such as age, gender, social well-being, and place of living that have an impact on the financial literacy of Kazakhstani people. Findings of my research play crucial role in understanding the level of financial literacy in Kazakhstan, and planning further educational programs.

Introduction

Research made by Organisation for Economic Co-operation and Develment [4, p.10] on financial literacy levels in the Commonwealth of Independent States revealed that there are still some inequalities in level of financial literacy. It was found out that, in comparison with women, men are better skilled with managing their personal savings. The index of literacy is higher among Kazakhstanis who have got bachelor's and master's degrees, work for private firms, or are employed by the government. Also, managing personal finances, making decisions based on finances using financial services are more challenging for age groups of 18 to 29 years old and of 60 to 75 years old.

Literature Review

This literature review takes a deeper look at aspects such as age, gender, education level, income level, and parental influence. 

The evidence from this study of Lusardi & Mitchell [3, p.13] suggests that individuals with higher education degrees have five times higher scores in financial literacy questionnaire than people who have not complete any bachelor degree. Okamoto and Komamura [5, p.11] suggest that there is relationship between financial literacy and age. The study indicates that financial literacy tends to be higher among adults in the middle of their life and, it is usually lower among young and elderly individuals.  Alekam, Salleh, and Mokhtar [1, p.9] reported in their research that parental advice from an early age had a positive impact on financial literacy. The results show that parental instruction, such as teaching how to budget or encouraging saving, has a major impact on financial literacy in children. 

Methods

This research requires both qualitative and quantitative data, as I will analyze reasons and consequences, and statistical information. By analyzing quantitative data from statistical sources such as surveys, I can identify cause-and-effect relationships.

Conclusion

Based on the results of conducted survey, it can be concluded that there is a need to improve financial literacy and personal finance management skills of residents of Kazakhstan no matter to their age, gender and education level.

Respondents rated their knowledge on financial concepts for average of 7 out of 10. Those respondents are also are satisfied with their knowledge on financial concepts, highlighting the critical role that families play in helping to build adequate financial decision-making behavior. Only 25% reported having experience in investing in stocks, bonds, or other kinds of financial instruments. These people also had a positive answer for creating saving budgets and emergency funds. The gained results play crucial role in research of the level of financial literacy of Kazakhstan’s population. Results approve that financial education play a vital role in forming financial well-being. Finding of this research also might be useful for implementing educational programs that promote financial literacy among residents of all ages and social statuses.