NBG: Georgians Have Intermediate Financial Literacy

The National Bank of Georgia (NBG), the country’s central bank, and the Development Facility of the European Fund for Southeast Europe (EFSE DF), carried out a study of the financial literacy of Georgians, implemented by research organization Sonar.

According to the results, released on August 5, the Georgians have intermediate levels of financial knowledge and there is need for ongoing education in this direction.

In total, 1100 Georgians were asked a range of questions designed to gauge their financial knowledge, behavior and attitudes.

The results revealed that Georgians have a satisfactory grasp of many financial concepts such as simple interest, risk-return and inflation. Around half of those questioned said they save money and 87 percent noted that they take at least some responsibility for their financial decisions.

Despite this, the results showed a relatively low awareness and usage of banking products and that the majority of respondents said they save only at home and have either only short-term financial goals or none at all.

The sponsors of the study also introduced two new brochures that explain key aspects of personal money management to help citizens broaden their knowledge. The brochures also explain home ownership and foreign currency borrowing for small businesses.

According to the Head of the NBG, Koba Gvenetadze, the study is very important for Georgia and the results will help to develop financial literacy programs and set benchmarks within the frames of the national financial education strategy.

“Financial education constitutes one of the priority areas for the National Bank,” he said, going on to thank the EFSE DF for its continued support in Georgia’s financial education efforts.

According to the NBG, the Bank supervises the financial sector in financial stability and transparency of the financial system, as well as in protecting the rights of the financial sector’s consumers and investors.

It was noted that this was the first time Georgia had participated in such a study, conducted based on the OECD/International Network on Financial Education methodology. The results will be part of the OECD’s comparative report to be released by the end of the year.

The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to promote economic development and success in 16 countries of Southeast Europe and the European Eastern Neighborhood.

Thea Morrison