LONDON, May 25, 2017 /PRNewswire/ -- Recently, there
has been an increasing amount of talk about financial behavior and
financial literacy. What is it? How to carry the bag? What
knowledge and skills are needed for this? This topic is as relevant
as ever now. It is unlikely to cope with it at once. That is where
an international financial expert, investor and businessperson
Dmitry Leus, can offer some insight. He can discuss the topic of
financial literacy not only in Russia, but also abroad.
The first question is on the assessment of financial literacy
of the domestic population and the level of its global
influence.
Dmitry says that financial matters are complicated for lots of
people, so he wants to explain the basic thoughts using lay terms.
The expert also claims that finance is the basis and foundation for
the development of both the national economy and citizens of the
country. The active development of the market in 2,000 years
has caused the situation that the population has had surpluses of
funds. Dmitry says that the first thing, which has been decided, is
the satisfaction of their basic needs and the increase of social
recognition (or status). Most citizens did not have and still do
not have the notion of what opportunities the financial market has
and how to manage the spare cash in the right way. Leus states that
the population misses the opportunity to participate in financial
market activities this way. Nevertheless, the key factor is in the
field of financial literacy, or rather, in its absence. Realizing
this situation globally, the state tries to influence it and work
for raising the level of financial literacy of the population in a
variety of ways. This includes the introduction of a system of
individual investment accounts, a deposit insurance system, and the
implementation of the special course within the school curricula.
Dmitry says that money is a resource that should work!
Everybody knows that Dmitry often goes abroad and takes part
in international programs. Therefore, he was asked about the
differences between Europeans in matters of financial
literacy.
Leus replies that it is incorrect to talk about the cardinal
differences in the situation in Europe or the U.S. Undoubtedly, the
overall level of financial literacy is higher there: It is
customary to run family finances (according to the latest data,
only 30% of households in Russia
have a budget), monitor the payment of taxes, manage freely
available financial resources and use tools of investment actively.
Such concepts as rent and dividend are well known for many people,
even in the outback. Moreover, most of Europeans living in isolated
places have full information about their current investments. He
says that this is their advantage. Leus claims that the basis of
the main differences should be found in the specifics of persons'
mentality. The expert also claims that the Russian people are
characterized by largesse, and this has an impact on revenues. In
his opinion, this in particular influences the existence of such
principle as "paycheck to paycheck." In other words, the
expenses end at that moment when the money runs out. According to
the investor, Europeans are more rational in matters of attitude
toward money. By the way, he mentions that the same rationality is
inherent to southern nations (Italy, Spain,
and Greece). Rationality and
keeping track of both the revenue and spending part of the budget
allows you to feel yourself more confident in times of financial
instability or deterioration of the financial environment in the
country. Moreover, Leus states that there is a high level of
financial literacy at the regional level, which is not the case for
many Russian cities. He considers that the potential for the growth
of Russia's financial market and
its further development is just in this segment.
After that, Dmitry Leus was asked to draw parallels
and compare where people from Russia and other countries invest.
Before comparing, Dmitry comes back to the issue of credit
experience. The expert says that according to the latest data, half
of Russians do not have the experience of bank lending. They often
use the principle "to save up – to buy." According to Leus,
this usually refers to the real estate. The investor says that he
has recently come across the statistics where it is mentioned that
about 12% of households own such realty as a "garage"! What is
more, this is a mental feature of the Russian people. Speaking
about the availability of assets of households in Russia and Europe, then Leus outlines such situation:
Assets
|
Russia
|
Europe
|
Financial
assets
|
75%
|
97%
|
Main owner-occupied
dwelling
|
75%
|
60%
|
Transportation
|
38%
|
76%
|
House,
land
|
33%
|
22%
|
Therefore, Leus concludes that the traditional object of
investment is real estate and it is traditionally converted into
ownership.
This segment is the most stable at this moment.
The last question has been about the principles that are
necessary to be adhered to in order to use and manage finances
effectively and competently.
Dmitry says that the subject of this issue is so deep that it
requires a good hour of discussions and considerations. Having
summarized everything to three main points, Leus emphasizes on the
positive budget (cash budget), savings and investments. He puts the
sense of exceeding level of your monthly income over the
expenditure (in this case, the expenditure is the maintenance
of the current level of spending) in the concept "positive
budget." One part the financial resources from the positive
balance should be in savings and the other part should be in
investments (financial credit documents, the real estate). Back in
the beginning of the conversation, which has been about the lack of
attention (and sometimes its full absence) to spending, then, the
businessperson says that we can often observe the situation when
"money is over before they appear."
Leus states that the competent management of the personal
finances is the way to freedom. Therefore, those who are still not
on the road, it is important to think twice.
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SOURCE Dmitry Leus