The FINANCIAL — Results of a study presented on July 29 show Georgians have an intermediate understanding of finance. The sponsors of the research also introduced two new brochures that explain key aspects of personal money management to help residents broaden their knowledge.
The study, initiated by National Bank of Georgia (NBG), the country’s central bank, supported by the Development Facility of the European Fund for Southeast Europe (EFSE DF), and implemented by the research organization Sonar, asked 1,100 Georgians a range of questions designed to gauge their financial knowledge, behaviour and attitudes. The results were presented during a conference titled “Financial Literacy for Financial Well-being”, which was organised with the support of the Savings Banks Foundation for International Cooperation (SBFIC). The study suggests Georgians have a satisfactory grasp of many financial concepts 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% noted that they take at least some responsibility for their financial decisions.
However, the results showed a relatively low awareness and usage of banking products and that the vast majority of respondents save only at home and have either only short-term financial goals or none at all. Thus, the study provides interesting insights into knowledge gaps and ways to help citizens become financially empowered and informed. This was the first time Georgia participated in such a study, which was conducted based on OECD/International Network on Financial Education methodology, and the results will be part of the OECD’s comparative report due for release by year’s end, according to NBG.
The National Bank of Georgia also presented two new EFSE DF-sponsored brochures that explain home ownership and foreign currency borrowing for small businesses. The brochure for future home owners discusses key aspects of taking a mortgage loan, including important contract terms and assessing how much potential home owners can borrow, which helps avoid an excessive debt burden. The brochure for small businesses teaches consumers how to realistically assess the risks of foreign currency borrowing, providing easy-to-comprehend and practical advice on strengthening small businesses; this brochure is accompanied by three practical tools which will help small businesses improve financing decisions. Available in Georgian, Russian and English, the brochures will be distributed via local financial institutions and universities in the coming months.
EFSE DF Committee Member Eva van den Heuvel said, “We are proud to have sponsored the study and participated in the development of the brochures. Both are playing significant roles in improving financial literacy, one of the main goals of the EFSE Development Facility”.
The NBG Governor Koba Gvenetadze said, “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, on the other hand, provide essential advice and practical tools to future homeowners and small businesses. We would like to thank EFSE DF for its continued support in our financial education efforts”.
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