The impact of financial literacy among Kazakhstani students on volume of micro loans

Abstract

Purpose of the research is to show how insufficient financial literacy negatively affects not only the personal well-being of the population, but also the economy as a whole.Methodology. Research work covers annual reports for 5 years from 2017 until 2021. Research uses primary and secondary data; authors conduct a survey and collect data from the official databases. Research is based on the survey of the OECD and is mixed done. Quantitative method of research is conducted by using R program. The qualitative method is conducted by a questionnaire among students of all regions of Kazakhstan (at least 100 participants).Originality / value of the research: This research analyzes Kazakhstani students' level of financial literacy, as well as its effect on increasing number of micro loans. Also, there is no impact from the university's background: students financially illiterate or literate at the same level.Findings. Amount of financially literate students is 45 % of all students who took part in a survey. Financial literacy index among students for 2022 is - 46,1. Both correlation and regression analyses show that the financial illiteracy positively affects the fast growth of microfinance organizations.Conclusion: Financial literacy does not mean minimizing the use of consumer credit, but leads to more attentive analysis of loan takers from the side of credit organizations. The government should control MFOs by requiring more personal information about cash flows from students. It was also found that specialty and faculty do not affect main financial factors, as behavior, knowledge and attitude to finance. On the other hand, research shows that students should be financial literate from their academic studies, as this will influence not only their future financial situation but also the country's economy as a whole.