What is Georgian’s financial literacy?
Monday, August 8
Georgians have a moderate understanding of finance, according to the latest research.
A study initiated by National Bank of Georgia (NBG), the country’s central bank, asked 1,100 Georgians a range of questions designed to gauge their financial knowledge, behaviour and attitudes.
The study was supported by the Development Facility of the European Fund for Southeast Europe (EFSE DF) and carried out by Sonar research organisation. The results were presented during the Financial Literacy for Financial Well-being conference in Frankfurt, Germany today.
The study revealed Georgians had a satisfactory grasp of many financial terms such as simple interest, risk-return and inflation.
“Well over half of those questioned said they save money in some way or another, and 87 percent noted they take at least some responsibility for their financial decisions,” said NBG.
However the results also showed a relatively low awareness and usage of banking products. The vast majority of respondents said they saved money only at home and had either only short-term financial goals or none at all.
To help citizens become financially empowered and informed, NBG issued two new EFSE DF-sponsored brochures which discussed key aspects of taking a mortgage loan, including important contract terms and assessing how much potential home owners can borrow.
“Both projects are highly relevant for financial literacy. The results of the study are important for developing financial literacy programs and setting benchmarks within the frames of the national financial education strategy. The brochures … provide essential advice and practical tools to future homeowners and small businesses,” said NBG president Koba Gvenetadze.