With the initiative of TBC Bank, for the first time a large-scale study on the public awareness about the basic fundamentals of finance has been conducted in Georgia.
The study was implemented with the support of internationally recognized research organizations such as the TNS and the School of Economics ISET.
Totally 1,000 respondents took part in the survey from the 7 major cities of Georgia (Tbilisi, Batumi, Kutaisi, Zugdidi, Poti, Gori, Rustavi). People at age 18 to 65 were interviewed. From there 45% represented men and 55% – women.
The aim of the research was to detect public’s awareness of financial issues and education. In addition, the reliance of commercial banks and trustworthiness of any other financial institutions was tested.
According to the international experience, the survey included 4 main questions on the following topics: inflation, risk diversification, compound interest, the benefits, which were formulated in the form of simple tasks.
In case people would have answered 4 correct answers from 4 questions asked, were evaluated as they had high financial literacy. Accordingly, in case they got 2-3 right answers they would be included in medium while if they would have answered 1 to 0 right answers they would be in the list of low financial literacy.
As a result, according to the study conducted, it turned out that three indices of financial education showed: low (52%), medium (42%) and high (6%).
Nikoloz Kurdiani, Deputy Director General of “TBC Bank” talked about the results of the study:
“We have a lot of programs to assist businesses, but until now there was no study that would reveal the dynamics. Accordingly, we have decided to resort to the practice proven worldwide and conduct such a survey using a standard methodology.
The new survey will be carried out in 2 years. Also, we have an idea to carry out such studies once a year. Anyway, it is important the society to have a tool that would allow to set the level of financial literacy of the population.”
When asked how the people manage their budget expenditures, whether they control it or not, 85% said that they control it, however 15% said that they do not control it at all. Mostly people in Tbilisi manage their budget expenditures, than in the regions. In addition men are less sensitive than women towards financial controlling.
Also when the respondents were asked whether they saved some money in last year 35% answered that they did it and 65% answered that they did not save any money at all.
It should be also noted that although the trustworthiness of banks is strengthened more and more in each year, anyway the 45% of interviewed people who have answered the question that they have saved some money in previous year still prefer to save money in cash than in banks.
The results of the study will meaningfully help TBC bank to develop future strategy plans in terms of financial education improvement.