Financial literacy of Russians: The relationship with socio-demographic and psychological characteristics

The goal of the study is to reveal the relationship between the financial literacy of Russians and socio-demographic and psychological factors using data from three waves of the All-Russian Panel Survey of Consumer Finances (2018, 2020 and 2022). Fixed effects regression shows that the age of an individual is related non-linearly with financial literacy and the profile has the inverted U-shape. The association of education with financial literacy is positive: respondents with specialized secondary and higher education are more financially literate compared to people with general secondary education or lower. Income, Internet use, the presence of a spouse, paid employment, and a bank account are also positively related to financial literacy. Individuals with higher risk appetite, low ability to control their emotions, and short-term time preferences are worse literate in personal finance. Robustness tests allowed us to conclude that the influence of gender on the level of financial literacy in Russia is insignificant.