Most Russians suppose that financial literacy is not an essential ability. According to the recent poll carried out by the National Agency for Financial Studies, the Russian people turned out to be financially illiterate. Lack of knowledge in the financial sphere is proved by both the poll results and a number of people who have micro-loans.
Respondents had to answer four questions about the influence of particular economic parameters on their financial situation. Only 12% of the respondents answered all four questions whereas 21% gave answers only to three questions. More than half of Russians do not know how inflation affects their personal income. Besides, they failed to give a definition of the deposit rate. About 42% coped with compound interest calculations and 35% are aware of direct correlation between risk and return. That is why various financial products of poor quality are so popular among Russia’s people.
People with varying levels of income have approximately the same degree of financial literacy. However, Russians with good education have broad knowledge in the financial sphere. As expected, the most financially illiterate people have poor education and very small income. At the same time, more prosperous Russians are bound to develop their financial literacy as they should know how to manage and save their money.
