Segmentation of Georgian Population According to Financial Capabilities and Money Management Style

Abstract

The purpose of the article is based on the latest literary sources and rich factual materials, based on the peculiarities of the financial behavior of the Georgian population, implementation of its segmentation according to the financial capabilities and money management style. As a result of the survey, 6 segments of the Georgian population are presented according to their financial capabilities, which are united under the following 3 relevant socio-economic statuses: Financially adapted socio-economic status (28.3% of the population); financially more or less adapted socio-economic status (35.9%); financially poor economic status (32.4%). During the study process, 23 regulations related to money management were used, which made it possible in depth study of the money management ways spread in the population. Based on the analysis of the answers received on the above mentioned 23 provisions, it is separated 6 segments according to money management style in Georgia: Financially Responsible (34% of the population), Having financial Fears (22%), Having business thinking (12%), Loaded with debt (16%), Spender 11%), and Shopaholic (5%). The important aspects of financial behavior are discussed in the article, such as the knowledge of basic financial concepts and the ability to use in real life, personal and management of household finances, set financial goals and make concrete steps to achieve them, saving and budgeting, preparedness for financial surprise and pension age, borrow and debt management, awareness and use of financial products.