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Less than a third of Albanians possess the minimum necessary financial knowledge.
A study by the specialist of the Research Department at the Bank of Albania, Elona Dushku, has once again shown the relatively low level of culture and financial inclusion in our society. According to the survey, only 29% of individuals possess the minimum of those considered the minimum necessary financial knowledge. On average, Albanians have a value of the financial literacy index of 3.7 (7 is the maximum level), from 4.4 which is the world average level of this index.
Survey results regarding financial inclusion show that only 54% of individuals in Albania know at least five financial products, compared to 83% of individuals globally and 86% in OECD countries (Organization for Economic Cooperation and Development) . Less than 40% of individuals have used a financial product in the last year, while globally this indicator is less than 50%. One third (or 33%) of individuals in Albania were
turn to family and close friends to get money, indicating their avoidance of the formal financial system. While globally, this indicator is almost 10 percentage points lower. Payment products are the products that are most owned by individuals in Albania, claimed by 29% of them. It is followed by savings products (22% of households), credit products (13% of households) and security products (9% of households). While in the world the ownership of these products is almost 2-3 times higher, which indicates a low level of financial inclusion in Albania.
The results show that women have on average a lower level of financial literacy index compared to men. According to age groups, young people (18-29 years old) and the elderly (60-79 years old) are characterized by a lower level of financial culture.
Unemployed, housewives, incapacitated individuals and students are characterized by low levels of financial culture, where at least two of its components take values below the average level of individuals. Individuals with lower incomes are characterized by a lower financial culture. Based on the settlement, we notice that individuals in rural areas have less financial culture, compared to individuals in urban areas.
According to the study, differences between groups indicate that these groups should be at the center of policies and programs to improve the level of their financial culture, which will result in higher financial inclusion and increased well-being of themselves and society. , in the long run.
Meanwhile, the financial welfare index, considered as the final objective of financial culture is estimated at 7.7 out of 20, for individuals in Albania and is lower than the global average value of this index (9.5). This result shows that Albanians feel insecure about the future, have less confidence to absorb financial shocks and are unable to plan for the future./Monitor
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