Bridging the financial knowledge gap: exploring theoretical models for improving financial literacy in Russia and abroad

About the authors:

Darya V. Lazutina, Cand. Sci. (Econ.), Associate Professor, Director of the Financial and Economic Institute, University of Tyumen, Tyumen, Russia; d.v.lazutina@utmn.ru, https://orcid.org/0000-0002-2423-961X

Ekaterina M. Faltinskaya, Laboratory Assistant Researcher, Research Center, University of Tyumen, Tyumen, Russia; ekaterinaportnyaga@yandex.ru, https://orcid.org/0000-0002-0464-8838

Abstract:

The recent global financial crises have highlighted the importance of the research on financial literacy, which the general population lacks, according to numerous studies. With the constantly changing economic climate, advancements in the financial data processing sector, and the rapid introduction of innovative products, individuals face significant pressure when making financial decisions for their households. Financial education plays a crucial role in shaping financial behavior and improving financial literacy. Both in Russia and abroad, improving the financial literacy of the population, particularly young people, is considered a priority. This article examines the context of financial literacy and national strategies in Russia and other countries. The authors utilize content analysis of academic literature, national financial literacy strategies, and related policy literature from various countries. Through their research, the authors assess the effectiveness of financial education and argue for new sociological research to understand how citizens acquire financial and economic skills. They aim to determine which agents and channels of socialization have a greater impact on successful economic socialization. By examining existing views on financial literacy in Russia and abroad, the authors apply new concepts in financial education.

References:

Apryshchenko, V. Yu., Kiryukhov, P. E., Grigoriev, E. A., Denisova, G. S., Brovchak, S. V., Shandulin, E. V., Kidyaev, I. A., Kokorev, R. A., Paranich, A. V., Abrosimova, E. A., & Bodungen, A. Yu. (2020). Fundamentals of Financial Literacy and Methods of Its Teaching in the System of General, Secondary Vocational and Additional Education. Students’ Textbook (5^th ed.). Retrieved Mar. 15, 2023, from https://app-dev.xn--80apaohbc3aw9e.xn--p1ai/storage/22302uchebnoe-posobie-322-5redaktsiya.pdf [In Russian]

Gordyachkova, O. V., & Kalavry, T. Yu. (2021). Textbook on Personal Finance and Financial Security. Mir nauki. Retrieved Mar. 15, 2023, from https://izd-mn.com/PDF/48MNNPU21.pdf [In Russian]

Zazulin, A. (2021). Bankruptcies in Germany and Russia: we compare the quantity in statics and dynamics. Zakon.ru. Retrieved Mar. 11, 2023, from https://zakon.ru/blog/2021/9/25/bankrotstva_v_germanii_i_rossii_sravnivaem_kolichestvo_v_statike_i_d... [In Russian]

Korlyugova, Yu. N., & Polovnikova, A. V. (2018). Financial Literacy: Materials for Parents. Grades 5–7 of Secondary Education. VAKO. Retrieved Mar. 11, 2023, from https://app-dev.xn--80apaohbc3aw9e.xn--p1ai/storage/22952/978-5-408-04088-9-metodiceskie-rekomendaci... [In Russian]

Miloslavsky, V. G., Gerasimov, V. S., Tranova, V. A., Gerasimova, O. S., & Kheilyk, I. A. (2016). Financial literacy of the population: problems and prospects. Molodoi uchoniy, (4), 452–456. [In Russian]

Pozdeyeva, E. (2022). Debt obligations. Why Russians began to take out more loans. Finam. Retrieved Mar. 11, 2023, from https://www.finam.ru/publications/item/dolgovye-obyazatelstva-pochemu-rossiyane-stali-brat-bolshe-kr... [In Russian]

Semeko, G. V. (2019). Financial literacy in Russia: problems and ways to solve them. Economic and Social Problems of Russia, (1), 70–97. Retrieved Mar. 11, 2023, from https://cyberleninka.ru/article/n/finansovaya-gramotnost-v-rossii-problemy-i-puti-ih-resheniya [In Russian]

Stolyarova, A. A., & Shakhnazaryan, G. E. (2010). Analysis of the world practice of developing financial education and improving financial literacy of the population. Finance and Credit Magazine, (34), 72–78. Retrieved Mar. 11, 2023, from https://cyberleninka.ru/article/n/analiz-mirovoy-praktiki-razvitiya-finansovogo-obrazovaniya-i-povys... [In Russian]

Treskova, K. (2023). Financial illiteracy. Brobank. Retrieved Mar. 11, 2023, from https://brobank.ru/finansovaya-bezgramotnost/ [In Russian]

Fursova, I. (2022). The level of creditworthiness of citizens has increased to 55%. What is the reason and how to cope with an unaffordable load of debts. Rossiyskaya gazeta. Retrieved Mar. 11, 2023, from https://rg.ru/2022/11/28/zajmy-poiut-romansy.html [In Russian]

Shvetsova, I. N., Badokina, E. A., Bochkova, S. V., et al. (2020). Textbook on the Foundations of Financial Literacy (I. N. Shvetsova, Ed.). Publishing House of the SSU. Pitirim Sorokin. Retrieved Mar. 11, 2023, from https://territory.syktsu.ru/finansovaya-gramotnost/Уч пос_Основы финансовой грамотности.pdf [In Russian]

Almenberg, J., & Säve-Söderbergh, J. (2011). Financial literacy and retirement planning in Sweden. Journal of Pension Economics & Finance, 10(4), 585–598. Retrieved Mar. 11, 2023, from https://www.cambridge.org/core/journals/journal-of-pension-economics-and-finance/article/abs/financi...

Bager, G. (2008). A tudásalapú gazdaság és társadalom. Állami Számvevőszék Fejlesztési és Módszertani Intézet. Retrieved Mar. 11, 2023, from https://www.mkksz.org.hu/html/main/alkossunk/vitainspirator/0208/05-asz.pdf

Bucher-Koenen, T., & Lamla-Dietrich, B. (2018). The long shadow of socialism: Puzzling evidence on East-West German differences in financial literacy. Economic Notes, 47(2–3), 413-438. Retrieved Mar. 11, 2023, from https://onlinelibrary.wiley.com/doi/10.1111/ecno.12108

Chikan, A. (Jul.–Aug. 1998). A gazdasági kultúra nem ismeretek rendszere, hanem szemléletmód. Új Pedagógiai Szemle23. Retrieved Mar. 11, 2023, from https://epa.oszk.hu00000/00035/00018/1998-07-gk-Chikan-Gazdasagi.html

Frühauf, F., & Retzmann, T. (2016). Financial literacy in Germany. In C. Aprea, E. Wuttke, K. Breuer, N. K. Koh, P. Davies, B. Greimel-Fuhrmann, & S. J. Lopus (Eds.), International Handbook of Financial Literacy (pp. 263–276). Springer Science + Business Media. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/311557173_International_Handbook_of_Financial_Literacy

Grinstein-Weiss, M., Spader, J., Taylor, Y., & Freeze, E. B. (2011). Parental transfer of financial knowledge and later credit outcomes among low— and moderate-income homeowners. Children and Youth Services Review, (33), 78–85. Retrieved Mar. 11, 2023, from https://ideas.repec.org/a/eee/cysrev/v33y2011i1p78-85.html

Imaeva, G. (2018). Financial Literacy Rating of Russian Regions. NAFI. Retrieved Mar. 11, 2023, from https://nafi.ru/en/projects/finansy/reyting-finansovoy-gramotnosti-regionov-rossii-2018/

Jonassen, D. H. (2004). Learning to Solve Problems: An Instructional Design Guide. Preifer/Jossey-Bass

Jonassen, D. H. (2007). What makes scientific problems difficult? In D. H. Jonassen (Ed.), Learning to Solve Complex Scientific Problems (pp. 3–23). Lawrence Erlbaum Associates. Retrieved Mar. 11, 2023, from https://www.taylorfrancis.com/books/edit/10.4324/9781315091938/learning-solve-complex-scientific-pro...

Kasman, M., Heuberger, B., & Hammond, R. A. (2018). A Review of Large-Scale Youth Financial Literacy Education Policies and Programs. Retrieved Mar. 11, 2023, from https://www.brookings.edu/wp-content/uploads/2018/10/ES_20181001_Financial-Literacy-Review.pdf

Koh, N. K., & Lee, Ch. B. (2010). Because My Parents Say So. Children’s monetary decision making. Procedia — Social and Behavioral Sciences, (9), 48–52. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/241123061_Because_My_Parents_Say_So-_Children’s_monetary_de...

Kulksar, L., & Kovacsne, H. L. (2011). Pénzügyi kultúra: Kincs, ami nincs. Új Ijúsági Szemle, 9(4). Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/309727175_Penzugyi_kultura_kincs_ami_nincs

Norvilitis, J. M., & Maclean, M. G. (2010). The role of parents in college students’ financial behaviors and attitudes. Journal of Economic Psychology, (31), 55–63. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/46493592_The_Role_of_Parents_in_College_Students’_Financial...

Pinto, L. E. (2016). Politics and Argumentation in Financial Literacy Education Policy. In C. Aprea, E. Wuttke, K. Breuer, N. K. Koh, P. Davies, B. Greimel-Fuhrmann, & S. J. Lopus (Eds.), International Handbook of Financial Literacy (pp. 131–146). Springer Science + Business Media. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/299447044_Politics_and_Argumentation_in_Financial_Literacy_...

Raijas, А. (Ed.). (2020). Kartoitus talousosaamisen edistämistoiminnasta Suomessa vuonna 2020 [А: 121]. Finlands Bank. Retrieved Mar. 11, 2023, from https://publications.bof.fi/bitstream/handle/10024/43722/A121-Anu-Raijas.pdf?sequence=1&isAl...

Rostamkalaei, A., & Riding, A. (2020). Immigrants, financial knowledge, and financial behavior. Journal of Consumer Affairs, 54(3), 951–977. Retrieved Mar. 11, 2023, from https://ideas.repec.org/a/bla/jconsa/v54y2020i3p951-977.html

Shim, S., Xiao, J. J., Barber, B. L., & Lyons, A. C. (2009). Pathways to life success: A conceptual model of financial well-being for young adults. Journal of Applied Developmental Psychology, (30), 708–723. Retrieved Mar. 11, 2023, from https://psycnet.apa.org/record2009-21969-006

Soroko, A. (2020). Buying into dominant ideas about wealth and poverty: An examination of U.S. and Canadian financial literacy standards. Teachers College Record, 122(3), 1–50. Retrieved Mar. 11, 2023, from https://journals.sagepub.com/doi/abs/10.1177/016146812012200301? journalCode=tcza

Stillwell, S. (2016). Financial Education in the UK: a case study of practice. In C. Aprea, E. Wuttke, K. Breuer, N. K. Koh, P. Davies, B. Greimel-Fuhrmann, & S. J. Lopus (Eds.), International Handbook of Financial Literacy (pp. 357–368). Springer Science + Business Media. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/306357261_Financial_Education_in_the_UK_A_Case_Study_of_Pra...

Stolper, O. A., & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of Business Economics, 87(5), 581–643. Retrieved Mar. 11, 2023, from https://link.springer.com/article/10.1007/s11573-017-0853-9

van der Schors, A., Crijnen, C., & Schonewille, G. 2019. Rapport Geldzaken in de praktijk 2018–2019 [Research report]. Nationaal Instituut voor Budgetvoorlichting (Nibud). Retrieved Mar. 11, 2023, from https://www.nibud.nl/onderzoeksrapporten/rapport-geldzaken-in-de-praktijk-2018-2019-2019/

Worthington, A. C. (2006). Predicting financial literacy in Australia. Financial Services Review, (15), 59–79.

Worthington, A. C. (2013). Financial literacy and financial literacy programmes in Australia. Journal of Financial Services Marketing, 18(3), 227–240. Retrieved Mar. 11, 2023, from https://www.researchgate.net/publication/263322490_Financial_literacy_and_financial_literacy_program...

Zhan, M., Anderson, S. G., & Scott, J. (2006). Financial knowledge of the low-income population: effects of a financial education program. Journal of Sociology and Social Welfare, 33(1), Article 4. Retrieved Mar. 11, 2023, from https://scholarworks.wmich.edu/cgi/viewcontent.cgi?article=3135&context=jssw