Consumer behaviour as a reflection of financial intelligence

Bc. Dmitry Baranov

Bachelor's thesis

Abstract:

The following thesis contains my research on the topic: Consumer behavior as a reflection of financial intelligence. I chose Russia as the region where people suffer from wrong decision making concerning use of financial products. I tried to include in the Thesis analyses of the historic facts, which could be the reasons of low level of financial literacy in the country. In theoretical part I introduced the definition of financial literacy with presentation of all its components. The method of evaluation, programs of development and strategic meaning of financial literacy also will defined in theoretical part. In the practical part I am using the research papers of National Bureau Economic Research and S&P Research Center concerning the level of financial literacy all around the world. On the base of this research I tried to build up the level of financial literacy in Russian Federation. Observing the low level of FL I was interested in the reasons of this fact. Using the literature of Dr. Vladimir Shitov „History of Finance in Russia“, I went through the main points of the economic crisis of 1990 in the new Russian history and economic educational program of Soviet states and found reasons for the low level of financial literacy there. To prove the conditions of financial intelligence in Russia I additionally found the information concerning the participation of household in Bank sector today and in practical part I gave examples of wrong decision making of Russian population using financial system of the country. All this information can build the image of the relevant level of FL in Russian and also the reasons of this circumstance. Fortunately in the World practice and in Russia itself governments are trying to implement different methods of improvement of financial literacy of population that also will be presented in practical part.

Abstract:

The following thesis contains my research on the topic: Consumer behavior as a reflection of financial intelligence. I chose Russia as the region where people suffer from wrong decision making concerning use of financial products. I tried to include in the Thesis analyses of the historic facts, which could be the reasons of low level of financial literacy in the country. In theoretical part I introduced the definition of financial literacy with presentation of all its components. The method of evaluation, programs of development and strategic meaning of financial literacy also will defined in theoretical part. In the practical part I am using the research papers of National Bureau Economic Research and S&P Research Center concerning the level of financial literacy all around the world. On the base of this research I tried to build up the level of financial literacy in Russian Federation. Observing the low level of FL I was interested in the reasons of this fact. Using the literature of Dr. Vladimir Shitov „History of Finance in Russia“, I went through the main points of the economic crisis of 1990 in the new Russian history and economic educational program of Soviet states and found reasons for the low level of financial literacy there. To prove the conditions of financial intelligence in Russia I additionally found the information concerning the participation of household in Bank sector today and in practical part I gave examples of wrong decision making of Russian population using financial system of the country. All this information can build the image of the relevant level of FL in Russian and also the reasons of this circumstance. Fortunately in the World practice and in Russia itself governments are trying to implement different methods of improvement of financial literacy of population that also will be presented in practical part.

Keywords

Financial literacy in Russia, concumer behaviour, Russian financial market, crisis in 1990, lack of financial education in Soviet Union, financial education, bad debts of Russians, how to increase the level of financial literacy.

Language used: English

Date on which the thesis was submitted / produced: 5. 10. 2016

Thesis defence

• Date of defence: 3. 11. 2016
• Supervisor: Ing. Marie Těhlová
• Reader: Ing. Kateřina Kalinová

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Business Management and Corporate Finance