Effect of Financial Literacy on Financial Well-Being in Georgia

Abstract

Making correct financial decisions requires a certain level of financial literacy, namely knowledge of different financial products and services and planning and managing personal finances, among others. While people with low to no financial literacy tend to have higher costs, like higher interest rate on their credits, a financially literate person is more likely to use financial services more cheaply and efficiently. This study evaluates the influence of a number of socio economic and demographic factors like age, gender, income and education on level of financial literacy of people in Georgia, and the relationship between financial knowledge, financial attitude, and well-being.