VolRC RAS scientific journal (printed edition)
RuEn

Journal section "Life quality and human potential of territories"

Financial Literacy of Young People (Case Study of the Vologda Oblast)

Belekhova G.V., Kalachikova O.N.

5 (85), 2016

Belekhova G.V., Kalachikova O.N. Financial Literacy of Young People (Case Study of the Vologda Oblast). Problems of Territory's Development, 2016, no. 5 (85), pp. 90-106

Abstract   |   Authors   |   References
The article analyzes specifics of financial literacy of young people. The issues of financial literacy have acquired special importance in Russia in recent years. Low investment and savings activity, high amount of loans taken by the population, lack of attention to providing for the life in old age, lack of understanding of one’s own responsibility for personal financial well-being, etc. are largely due to low financial literacy. Ultimately this affects the material welfare of the population and the development of the economic system of the territory. Of great importance in understanding the orientation and composition of actions to improve financial literacy is the identification of “weak spots” that characterize the financial knowledge and competence of specific population groups. In this context, of special interest is the study of financial literacy of young people (18 – 29 years of age), because representatives of this socio-demographic group presumably have better mobility, receptivity to learning and mastering new tools, ability to implement acquired knowledge and skills over a long period of time. The paper is based on the results of the sociological survey “Quality of life” conducted by the Institute of Socio-Economic Development of Territories of RAS in the Vologda Oblast in 2014 and 2016. The study used general scientific methods (logical analysis, synthesis) and the sociological analysis of “conditional generations”, which helps identify differences in financial knowledge and competencies of young people, middle-aged persons and pensioners. The study explores the dynamics of self-assessment of financial literacy of young people and reveals trends according to its base components. The authors point out that financial knowledge and skills of the young population of the Vologda Oblast are objectively characterized as low. The paper identify “weak spots” in financial literacy of young people: inconsistency in the formation of financial reserves, poor control over cash flow, insufficient inclination or no habit to searching for the best financial products. In conclusion, attention is drawn to the fact that measures to improve financial literacy, including those taking into account specifics of socio-demographic groups, must be among the strategically important directions of work of public authorities in order to improve the quality of life of the inhabitants of individual regions and the country as a whole

Keywords

young people, financial literacy, family budget, deposit insurance system, comparison of services