Ten years ago, only 20% did not doubt his competence.
Over the past 10 years, the number of Russians who rate their financial literacy highly has grown from 20% to 58% respectively. Experts from the NAFI analysis center tell this story, after interviewing 1,600 respondents.
The share of those who doubt their ability to manage their own money fell from 36% to 10%, respectively. People over 60 years old (15% of respondents) and Russians who are not working (16%) rate their financial literacy the lowest.
In a similar 2011 survey, think tank experts saw differences in their own financial literacy assessments by region. In particular, 42% of Far Easterners and 44% of Southern Russians rated their knowledge unsatisfactory. Over the past 10 years, differences have been smoothed, analysts say.
“Due to active digitization, the number of channels that people can use to receive financial services is growing. As a result, the more Russians become active users of financial services, their confidence in this context is getting stronger, ”said Director General of the NAFI Center for Analysis Guzelia Imaeva.
The think tank chairman also noted the growing popularity of financial services among the younger generation. According to NAFI data, 56% of teens use Internet banks, and 32% make cashless purchases.
Read also: by 2021, the share of non-cash payments in the Russian Federation will be 73%, says the Bank of Russia.
Imaeva also noted the need to develop and improve government programs to improve the financial literacy of the population for the elderly and unemployed. On the other hand, according to NAFI data as of July 2021, 75% of teenagers want to improve their financial literacy, he said.
In 2019, the analytical center assessed the level of financial literacy of Russians. Experts find that there is a gap between people’s opinions about their competence and actual financial literacy. In addition, the difference grows with the age of the respondents.
Specifically, 34% do not understand the relationship between profitability and risk, which is why they risk falling victim to a financial pyramid. More than 30% of cardholders faced attempted fraud, 4% suffered financial losses, NAFI said. In 2019, more than half of Russians (60%) did not care about their personal data.
Let us remind you that the low financial literacy of retail investors is the reason for the restrictions of the Central Bank. In June, Russian President Vladimir Putin signed a law restricting the sale of sophisticated financial products to retail investors with no experience. In October, the Bank of Russia also proposed limiting the investment of unqualified investors in digital financial assets (DFA). And in November, the Central Bank decided to regulate the attractiveness of private investors in the company’s initial public offering (IPO).
Read also: The Central Bank wants to ban Russians from investing in cryptocurrencies.