HOW DOES FINANCIAL LITERACY AFFECT THE QUALITY OF LIFE FOR KAZAKHSTAN?

Abstract. Being carried out in the framework of the enhancing economic condition of Kazakhstan and regarding the impact of the certain factors such as technology this research proposal is aimed at examining the role of the financial literacy in the quality of the life improvements in the Kazakhstan. It considers how the people and societies can have a better likelihood of enhanced lives by applying the stances of finance and comprehending the effects of the financial ideas and functions. The study under discussion can be considered laying the groundwork to apply the qualitative research design; the author interviews both financial professionals and financial laypeople with the intent of identifying the extent of the capability of financial literacy to grow.

Introduction. People are emerging ever reminding themselves to be financially literate, the skill of personally managing money wisely because everyone’s financial independence enhances their well-being (Xiao & Białowolski, 2022). Kazakhstan can be among the examples, to which it is necessary to pay special attention concerning the problem of financial literacy. The financial sector for instance in Kazakhstan has been on the rise from the nineteen nineties up to this present year since it adopted independence in 1991 the door was opened and that the index was introduced through oil revenue. The inhabitants of extensive large cities and district ones have nevertheless numerous differences in today’s society (Kapparov, 2020). Of course, the conditions of integrating higher financial services with a lower level of their comprehension have resulted in negative impacts including insolvencies and banking crisis. There is a gap in the literature that should be filled, albeit this paper does not aim at providing an exhaustive fill of this gap. Student survey of Kazakhstan showed that decreasing level of financial literacy is directly proportional to worsening of the quality of personal and economic life (Mukan et al. , 2023). This is a clear hint that such a problem must be worked to be solved. It has also pointed out that the moderating role of a fintech also implies that the use of a financial technology in moderating the relationship between financial literacy and quality of life as seen from the study done by Lusardi and Messy and will yield results by 2023. Due to the possible positive effects of Fintech on financial management solutions, it is possible that the quality of life may see enhancements made. Nonetheless, it is perhaps leisure activities that can in some way moderate the effects of this relationship by establishing that there is a need for any individual with too much leisure time on his/ her hands to engage in fintech which in turn enhances the quality of life. Another issue that was mentioned was the quality effect of financial literacy on the quality of life The results of the carried out studies were analyzed to obtain a qualitative comparison of the populations characteristics The following points marked the influence of financial literacy on peoples quality of life There is a significant positive correlation between financial literacy and the quality of life as the results of the comparison of the populations characteristics showed

Economic Stability: On its part, financial literacy enables individuals to make sound decisions concerning their cash~savings, investment, or credit; in this regard, human beings can acquire financial stability and enhance the standard of their living (Xiao & Białowolski, 2022). According to a research conducted by the Asian Development Bank, financial literacy programs conducted in the Kazakhstan enhanced the saving capabilities and the ratios as well as making reductions in non-performing loans which in the long run make for a healthier financial nation (Kapparov, 2020).

Financial Inclusion: It has been revealing that financial literacy contributes to financial inclusion and being able to access basic financial services as well as assisting people to make wiser financial decisions (Mukan et al 2023). Literature, for instance, Lusardi & Messy (2023) reveal that, Financial literacy has a direct positive correlation with financial inclusion. It also indicates that high Financial Literacy individuals are more likely to utilize financial services and make a more selective area of the financial services. The failures associated with financial literacy are as follows:

Income Disparity: While it can have a positive impact on people, the information look-forward function may reinforce existing inequities when it comes to financial literacy. For this reason, the study done by Hadžimuratova et al. in the International Journal of Social Economics to determine how the people in Kazakhstan were financially literate depending on the suitability of the programs available to them.

Overconfidence: Remarkably, while increasing the individuals’ awareness of all things related to economy makes them financially literate, it also makes them overconfident and possibly reckless (Lusardi & Messy, 2023). The problem of financial literacy was discussed in a research article of the Cambridge Journal of Financial Literacy and Wellbeing, where the authors noticed that while higher levels of financial knowledge brought the risk taking behaviour in some people, it also created overconfidence.

Conclusion. Lack of financial literacy has a great impact on the life quality of the population in Kazakhstan and has impact on varies aspects of social and economic life. There are also some positive impacts of the policy as it ensures economic stability and contributes to the growth and development of the financial institution but also causes increase in the income difference and over confidence if the policy is not well implemented and managed.