Finantskirjaoskuse edendamine Eestis: ekspertide hinnang

Abstract

The aim of this Bachelor thesis “Improving financial literacy in Estonia: experts’ opinions” is to obtain knowledge of the current perception of financial education from the experts’ point of view. Financial literacy is one the most important consumer education areas within Estonia, and is actively being promoted. Insufficient levels of financial literacy is not only a problem for Estonia, but a problem that is recognised around the world. The empirical part of the study consists of the conclusions using a semi-structured interview, conducted with 7 experts. The sample consisted of experts from both the public and private sector, who worked in organizations that held financial education initiatives. The method enabled evaluation of the subject area from the experts’ perspective. The main research questions were: how experts define and classify financial education initiatives, how experts evaluate the current situation of what has been done in Estonia to raise the level of financial literacy, what are experts opinions on the technical and strategic preparation and implementation of education initiatives, how experts evaluate the results and how they see the future of financial education initiatives. Experts operate mainly with the terms “knowledge” and “education” - therefore the central role is perceived as having educational purpose. Educating through face-to-face programmes is seen as the most effective and as such the most necessary method. Social media marketing as a method was not mentioned spontaneously in interviews, but social media advertising and public relation methods were seen in a supporting role to promote desired behaviours. Experts acknowledge that the area of financial education is still new in Estonia, but the first phase of “trial” is over and has now developed to a “maturity” phase. There is active participation in the private sector as well as the public sector, where organizations have developed several programmes and co-operated with both public and other private sector organizations. A lot of initiatives from banks have come from the overseas parent company, however the local banks have not been restrained from developing their own initiatives. Financial institutions are concerned about public trust issues towards their financial education initiatives as there may be doubt about their true motive. For both the client and the bank a relationship with mutual trust is beneficial as it reduces problems and improves service. The main perceived problem is the lack of coordination of programmes and unclear distribution of roles, which can result in duplication of programmes and uneven targeting of problems and target groups. As a solution experts see “Financial literacy strategy (2013-2022)” developed by Ministry of Finance of the Republic of Estonia as key. Experts from very different fields were involved in the development of the strategy, thus different stakeholders interests were considered throughout the process. The public sector needs to target the general population of Estonia, whilst the private sector is able to select the target group which suits them best and which they believe needs financial knowledge the most as they have no obligation to target the population as a whole. The aim of the programmes is both to improve individual financial knowledge and also change attitudes and financial behaviour. Experts are therefore using linear behaviour modelling which is also used by OECD. However the problem of such an approach is that a good level of financial literacy does not always result in desired financial behaviour. Experts see their work as consumer education and did not discuss any wider benefits for macroeconomics. This study focused on mapping the opinions of experts on the current situation of financial education in Estonia and provides a good basis for further academic research regarding financial education.