YEREVAN, November 7. /ARKA/. The financial literacy regarding banking services among the Armenian populace has seen a notable increase in recent years, stated Georgi Melkonyan, the head of Freedom Academy Armenia.
“When we assess financial literacy in terms of financial management and engagement with banks, the advancements are substantial. We have effectively addressed the issue of ‘keeping money under the pillow.’ For the majority, a bank deposit now serves as a ‘cushion.’ This marks significant progress,” he remarked during an interview with the ARKA news agency.
However, he pointed out that in the realm of investing, Armenia is essentially starting from ground zero.
“A very small fraction of the population is familiar with investment instruments; for many, it remains a dark forest. In reality, investing is a necessity for every financially literate individual with an average or above-average income,” Melkonyan emphasized.
He believes that the understanding of finances among Armenians is hindered not only by a lack of knowledge, habits, or trust in financial institutions but also by their mindset.
“We tend to be cautious about anything new… There are numerous educated individuals who comprehend securities but lack the skills to manage them. People struggle to break through a certain psychological barrier. They misinterpret the risks associated with investing in financial markets, as the stock exchange allows for both high-risk and conservative investments,” he clarified.
Moreover, as Melkonyan points out, Armenians sometimes display an inappropriate attitude towards money.
“At times, we fetishize it, which is erroneous. Money should be utilized appropriately. Some individuals find it exceedingly challenging to part with their money, even when it is necessary. They only feel secure when their money or gold bars are stored at home, allowing them to physically touch them,” he elaborated.
He added that buying gold on the stock market is a good investment. “In terms of rationality and financial results, it’s the same thing, with one difference: I have lower transaction costs, meaning I don’t have to keep it in a safe,” Melkonyan said.-0-
