Financial Literacy in Russia: Problems and Tendencies of Development

Abstract

The article is devoted to a comprehensive study of financial literacy in Russia at present time. The purpose of the study is to consider the problems and tendencies to improve financial literacy in Russia. Financial literacy in combination with financial education and adequate financial behavior of the population allow to make well-considered decisions to achieve financial well-being of the citizens and economic welfare of the country. Poor financial literacy results in making unreasonable decisions that leads to decline of public confidence in financial institutions, accumulation of debts, exposure to risks of fraud from the providers of financial services. The low level of financial literacy hinders the development of the state economy, weakens the effectiveness of financial sector governance, limits the investment that determine the opportunities of economic growth of the country. In this context the study is essential. The article considers the tendencies of development of financial literacy. The author comes to the conclusion that adequate financial behavior of the population (making reasonable decisions, balancing income with potential risks from acquiring financial products) is less vulnerable to fraud, encourages the providers of financial services to create new products of improved quality and promote competition and has a positive impact (although indirectly) on investment and economic situation in the country. In the course of research, the author used general scientific methods: analysis and synthesis, induction and deduction and system approach. The obtained results can be used as recommendations to enhance the financial literacy of the country population.