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Think about joining the work force right out of university, only to realize that you have no clue how to handle your salary, pay rent, or even save for the future. This is the reality that many young people in Kazakhstan face today. Without even basic financial knowledge, individuals are forced to make difficult decisions on their own and frequently end up making mistakes that have long-term consequences.
Aigerim Kosbayeva.
Overall, financial illiteracy has emerged as a long-term threat to the stability of the nation’s economy as well as the economic prospects of its citizens, and it deserves serious attention.
Most young people in Kazakhstan lack elementary skills of managing small amounts of cash, saving or handling credit. Although the curriculum of education comprises many subject areas, it lacks a focus on imparting important life experiences. As a result, young people enter adulthood without basic skills on how to manage debt or budget for future expenses. Financial instability among a sizable section of the populace has an adverse effect on economic growth and stability in addition to personal struggles.
The first strategic actions taken in personal finance, such as borrowing money or using credit cards, often set young people on either good or bad financial paths. For instance, a significant portion of the youth in Kazakhstan applies for loans either for personal use or informal financial loans without understanding the implications of such actions. This can result in deep debt, to the extent that they cannot finance other activities such as starting a business or buying a home.
To address this issue, financial literacy should be incorporated into the curriculum at all levels of education. Young people should be taught about issues concerning budgeting, saving and investing at an early stage so that they are well-prepared to manage these processes throughout their lives. Useful knowledge about effective budgeting, objectives for everyday expenses, saving, and other practices can help build a solid foundation that avoids excessive use of credit and other risky financial decisions.
Establishing such programs is not enough; we require qualified teachers who can effectively explain these concepts to achieve the desired results. Currently, there is a lack of qualified teachers in Kazakhstan at schools and universities who can competently and confidently teach the principles of financial literacy. Additionally, involving professionals from the finance sector to conduct workshops or seminars could help bring both theory and practice to life.
Furthermore, Kazakhstan can learn from examples of other countries. Singapore, for instance, integrates financial education into its school system, resulting in a financially literate generation. Similarly, schools in Finland emphasize mastering good financial skills at an early age, ensuring students grow up with sound financial knowledge.
However, some may argue against introducing yet another subject to the curriculum, citing the already heavy demands on students and the scarcity of funding for schools. Others might argue that teaching children how to use, save, invest, and manage money should be the responsibility of parents. Financial literacy is not just another addition to the formal education system; it is a part of personal life experience that significantly impacts every aspect of an individual’s future.
One of the tools that could enhance financial literacy includes financial applications and online classes. Such platforms would democratize knowledge and ensure that young people can learn various aspects of personal finance at their own pace.
Investing in personal financial capability is not only an investment in the population but also in the future of Kazakhstan. By ensuring people understand finances, we can foster increased commonwealth, greater investment and more informed decision-making, which will contribute to national growth.
It is crucial for Kazakhstan to promote financial literacy as part of formal education, organize special workshops for teachers, and encourage families to engage with financial topics together with their children. In doing so, we can ensure that our younger generation creates better and safer lives for themselves and contributes to building a stronger nation.
The author is Aigerim Kosbayeva, a graduate student of the Nazarbayev University Graduate School of Public Policy.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
