There is an opinion that the use of microloans is a consequence of so-called financial illiteracy. People who are clients of MFIs are not able to plan their budget. Is it really so?
RuNews24.ru asked Vladimir Olenchenko, senior researcher at the Center for European Studies of the Institute of World Economy and International Relations of the Russian Academy of Sciences, to refute or agree with this statement. The expert expressed his agreement with the statement.
"I agree with this opinion. I would even say that it is not just a question of literacy, but of financial education.
We do not immediately learn, for example, to eat right. We have a sense of proportion, we understand how much and when to eat. It is the same with money: people are influenced by advertising.
For example, every day we see a lot of offers from popular stores. Some things raise doubts: who might need this product urgently? Sometimes advertising is misleading. For example, I received a call offering me very cheap goods. I say, "Okay, but I don't need it." They say: "Maybe you'd be interested." I answer: "I usually buy things not on the principle of 'expensive' or 'cheap', but on the principle of 'need'", - said the expert.
Vladimir Olenchenko is sure that it is important to bring up financial literacy from childhood.
"Many people do not take into account how much they will have to pay for this or that product. For example, if we talk about stores, they write 30% discounts, but a person can take out a microloan to buy a thing. Then the benefit will be zero. The discount will go to pay off the interest.
I would introduce a special lesson in school, starting in the fourth or fifth grade. Using examples to teach children to calculate the benefits of buying. They would not just say 'don't take the money', but would explain what the benefit would be today or in a year," says the newspaper's interlocutor.