Financial Literacy of Rural Population as a Determinant of Saving Behavior in Kazakhstan

Abstract

Abstract. In rural Kazakhstan, the credit and insurance services are limited and the state support is weak. Therefore, households' saving is crucial to provide an insurance against the economic and social shocks. The main goal of this study is to contribute to the literature on financial literacy in emerging economies, namely, the effect of financial literacy on saving rates of rural population. Being well educated not always means to be financial literate and make efficient decisions regarding one's own finance. People with a lower formal education level but with better experience in consuming financial products could be better prepared for making financial decisions including those related to savings. In this paper other socio-economic determinants of saving rates were taken into account, such as an income level, family size and an employment status. This research was carried out in Pavlodar region of Kazakhstan, and the data collection took place in spring 2014. In total, 405 households were surveyed. Results of the analysis show that if a respondent gives at least one correct answer, it positively affects the saving rates as well as one can observe that the higher the financial literacy level, the higher are the saving rates. Availability of state supported financial education programs for rural people will significantly contribute to the financial literacy improvement. At the same time, providing various and appropriate financial products in rural areas will motivate rural people to search for new knowledge and require authorities to intensify activities in this field.

Strategy For Financial Wellbeing Among Public Servants In Malaysia

“…As an effort to help the overindebted people out from their problem, Koloba (2018) suggest universities in South Africa to include financial literacy program for all students across the discipline. Another suggestion to improve the financial literacy was also documented by Gaisina & Kaidarova (2017). According to them, the government is responsible in planning and executing program that are effective in increasing the level of financial literacy among public.…”

“…In addition to methodology issues, study on determinants of financial wellbeing in emerging economies like Malaysia is relatively scarce, thus calling for more research to address this literature gap. For example, studies on financial literacy in the context of developing country is still limited (Gaisina & Kaidarova, 2017) and the literature is still facing problem of having a definite valid measurement of financial literacy that can be adapted to different context of study (Ciemleja, 2016). Among others, the issue is related to the multidisciplinary approach of investigating financial literacy that supported by different theoretical background.…”

“…All this continuing issue related to financial wellbeing has contributed to the development of different streams of financial wellbeing literature, which is still growing. As such, there are studies investigating the factors of financial wellbeing (e.g: Gaisina & Kaidarova, 2017), while others investigating the consequences of financial wellbeing (e.g: Barbic, Palic & Bahovec, 2016). The issue is becoming more critical with the increasing number of pensioners across nation, higher number of productive workers in the job market and also higher number of reported case in relation to personal debt, poor financial management and improper financial planning.…”

Importance of Financial literacy For Sustainable Future Environment: A Research Among People In Rural Areas With Special Reference To Mandi District,Himachal Pradesh

“…To preserve their competitive advantage firms, need a wide range of resources and a wide knowledge base Education is a one of the main component of financial literacy that affects the environment globally. [2] According to Hogarth (2006), financial education is considered differently by different people. Some people would esteem themselves as financially educated if they possess quite a broad range of financial knowledge as understanding complicated macroeconomic issues and their effect of everyday household financial decisions.…”

Level of financial literacy of academic youth from rural areas in the Visegrad Group countries

“…One of the factors differentiating the level of financial literacy of citizens is their place of residence (rural/urban areas). Numerous studies indicate that the inhabitants of non-urbanized areas are characterised by a much lower level of financial literacy compared to the inhabitants of cities [Lusardi, Mitchell 2014;Kata et al 2015;Gaisina, Kaidarova 2017]. In addition, the statistics reveal huge disparities in these areas, especially when taking into account poor countries [Xu, Zia 2013;Bendre, Singh 2017;Karakurum-Ozdemir et al 2018].…”