Write a report on how people in your country manage their finances

The Soviet past had a huge impact on financial thinking of the population. The USSR fell apart almost 30 years ago. But in spite of it, many people still retain that time and desperately hope that the government will rescue them from miserable retirement. This is only applicable to high-income countries. Unfortunately, Russia is not one of them at the moment.

Many people do not even contemplate the savings. Thousands live paycheck to paycheck due to plenty of extravagant expenses. Many people do not have money for a rainy day. Some thrifty people keep their money on saving deposits as it is considered stable. Their average interest rate is 5%. It can hardly overcome inflation and at best your money will not be depreciated. People do not invest their capital in shares or bonds because they do not know how to deal it and what profit they can get. The most well-known way to invest money is buying property and leasing it. This method is archaic. Nowadays to own stock portfolio is more profitable. Regrettably, many people do not know about it or hesitate not to handle it. According to statistics, people in Russia do not manage their finances properly. The majority prefers keeping money in rubles than in foreign currencies such as dollars or euros. I was surprised to discover that thousands still invest their money in Pozni schemes. Moreover many people confuse Sberbank and Central Bank of the Russian Federation.

I tend to believe that for the elimination of current financial illiteracy schools should introduce such a class in curriculum. Also I suggest that information campaign should be run in the mass media. Public service announcements should be shown on television. I suppose that these methods can improve the current situation.