Demographic Analysis of Financial Literacy Level in Azerbaijan

Abstract

Financial literacy is knowledge that every person needs in everyday life. Studying theory, mastering practical skills, developing financial thinking - all this will allow each of us to become financially successful. Research Objective: The aim of this study is to ascertain the financial literacy level of individuals living in Baku, The Republic of Azerbaijan. 280 people between the ages of 17-60 were involved in the survey, comprised of public and private sector employees, self-employed, retirees and students to attain this objective. Method: SPSS 25.0 for Windows package program was used to evaluate the research data. First of all, frequency was determined in the research. While testing the hypotheses of the research, t-test was applied for independent samples, and Mann Whitney U test was used for comparison of two nonparametric independent groups in the examination of the differences between more than two groups. In addition, the Chi-Square test was utilized to ascertain the degree and direction of the relationship between the relevant variables. Factor analysis has been practised to reduce the number of basic dimensions or group, the variables to facilitate understanding and interpretation of the relationships between multiple variables. In order to decide on the correctness of the answers given to the questions, reliability analysis was performed. Results: In consequence of research, the average level of financial literacy success is determined to be 75% in Baku. Nevertheless, financial literacy level of the participants differs according to demographic variables such as gender, age, marital status, income, profession, education level. Conclusıon: These results can be used to guide policy makers where to place more emphasis in terms of financial education for Azerbaijans.