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Armenia’s Savings Habits: A Mixed Bag

A recent study conducted by the Central Bank of Armenia in cooperation with the Alliance for Financial Inclusion has revealed a mixed picture of the country’s savings habits. The Financial Capability Barometer survey, which interviewed 1,536 people across Armenia, found that while many individuals are taking steps to save and manage their finances effectively, there is still much room for improvement.

Savings and Long-Term Planning

The study found that nearly half of respondents (45%) have a savings account, with the majority (65%) having saved money in the past year. However, only 22% of respondents reported having a long-term financial plan, and just 15% have invested in stocks or other investment instruments.

Debt Management

The survey also highlighted concerns about debt management, with 62% of respondents reporting that they have some form of debt. While many individuals (55%) are paying off their debts on time, a significant number (25%) are struggling to keep up with payments.

Financial Education

The study’s findings suggest that financial education is an area where Armenia still has work to do. Only 38% of respondents reported being well-informed about financial fraud and forgery, while nearly half (48%) did not know what steps they could take if their rights were violated.

Protection of Personal Rights

The survey also found that many individuals are unaware of the legal institutions responsible for protecting consumer rights. While 86% of respondents reported seeing the need to be well-informed about financial instruments, only 47% knew about the Financial System Mediator.

Conclusion

The Financial Capability Barometer study provides a comprehensive overview of Armenia’s savings habits and financial literacy. While there are areas where individuals are taking steps to manage their finances effectively, there is still much room for improvement. The study highlights the need for increased financial education and awareness, as well as better protections for consumers.

Key Findings

  • 45% of respondents have a savings account
  • 65% of respondents have saved money in the past year
  • 22% of respondents have a long-term financial plan
  • 62% of respondents have some form of debt
  • 55% of respondents are paying off their debts on time
  • 38% of respondents are well-informed about financial fraud and forgery
  • 47% of respondents know about the Financial System Mediator

Recommendations

The study recommends that policymakers and financial institutions prioritize financial education and awareness, as well as consumer protection. It also suggests that individuals take steps to manage their finances effectively, including creating a budget and saving for the future.

Survey Methodology

The Financial Capability Barometer survey was conducted by CRRC-Armenia from October 18 to December 8, 2019. The sample size was 1,536 people, which ensures a 2.5% margin of error at a confidence level of 95%.