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

Although food and clothes prices are sometimes high, the taxes in Russia are considered to be the lowest in comparison to the European or American ones. Most of people cannot afford to buy a flat or a car without borrowing huge sums of money or getting a bank loan. Mortgage rate is not friendly at all and it sometimes can create tangible problems. It is fair to say that consumer goods are quite affordable, especially if one lives within income. The price of petrol is extremely high and keeps increasing.

The cost of living in Russia is quite high and also there is a large gap between the poor and rich. Most people have a low standard of living and a low income. Credit card charges are also high, whereas salaries are pretty low or average.

As the majority of Russians do not have high salaries, they often need help from a bank to make their dreams come true. Since they have taken a loan they are in the beginning of paying fixed sums of money on a monthly basis. It is usually a long and complicated process. As a result for taking out a loan, Russian people sometimes have huge problems with it afterwards. Some of them even end up totally broke.

Russians know how to count their money, but their lack of financial literacy can harm their budget seriously. According to the surveys almost half of interviewed people admit to financial illiteracy. It turns out that financial education in my country is of primary importance. It will help the Russians not to end up in debt in case of difficult financial situation. Many people usually underestimate their personal responsibility for any financial loss and traditionally expect the government to help them. If Russians will take care of their finances by themselves and spend prudently, they can generally live well here.