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Financial literacy of Russians grows during past four years
Over the past four years, a rise in the level of financial literacy of Russians has been reported: people have begun to keep a family budget, make savings and control their expenses more often, the NAFI Analytical Center informs.
NAFI has been measuring the level of financial literacy for more than 10 years. For this purpose, the Financial Literacy Index has been used since 2018 to reflect person’s ability to manage personal finances prudently. This indicator is measured in the range from 1 to 21 points. As of early 2022, the Financial Literacy Index of Russians reached 12.57 points (an increase by 2% compared to 12.12 points in 2018).
The four-year dynamics shows that 10% of Russians consistently demonstrate a high level of financial literacy. The share of people with a low level of financial literacy dropped from 44% to 29% over this period, while the share of Russians with an average level of financial literacy has increased by 15 p.p. to reach 61% in 2022.
The level of financial literacy is growing primarily due to the skills of short-term planning, family budget management, personal finance control and the ability to save, NAFI says.
Over the past four years, a significantly larger number of people began to manage a family budget in one form or another, keep records of their expenses and strive for a balance between income and expenses (an increase by 11 percentage points to 58%). The share of those who save money has increased by 14 p.p. (54% in 2022). 82% of Russians began to monitor the state of their finances more closely (70% in 2018).