Psychological differences in financial desicion making by people from different generations
Keywords:
financial decision, decision making, age, financial literacy.Abstract
In all countries, a pressing issue was the problem of teaching the basics of finan cial literacy of the population.Dynamic changes in economic environment, especially regarding financial markets, cause the necessity to develop financial skills of societies. Improving financial literacy of the population has become one of the most urgent problems of modern society.And Kazakhstan is not an exception. Population in the Kazakhstan is facing an increasingly complex and perilous financial world. The more urgent the task, as the population once again faced with the economic crisis in 2015. The development of new technologies makes it possible to improve the quality of financial services, which in turn, makes the population lives more comfortable. Dif ferent Apps for smartphones and tablets make it possible to buy food, clothes, tickets, home appliances and even insurance on vehicles without leaving your home. It really makes life easier for the population, but requires him to ownership of a minimum of knowledge and skills in the field of computer, and in the area of financial literacy. Currently, the importance of financial education has increased significantly for two main reasons: 1) the responsibility and the risk of making decisions that can have a serious impact on the lives and the future of each individual, are transferred from the state to citizens; 2) financial services, government support are becoming more diverse, which means that you must make a difficult choice from a wide selection of options. Financial literacy gives people the knowledge, understanding, skills and confidence to enable them to make financial decisions and take actions that are most appropriate in any given situation. Despite the large number of different initiative in this field, the financial education level in Kazakhstan is rather low. Both generations are in economically disadvantaged positions, lack financial knowledge and access to mainstream financial institutions. The present study examined age differences in financial decisionmaking by comparison of financial literacy and decisionmaking ability of individuals of different ages. The survey assesses the level of young and old customer’s financial literacy, examines young and old customer’s decision factors and correlation between them and basic financial knowledge and skills.
References
2 Parker A M, Fischhoff B (2005) Decision-making competence: External validation through an individual-differences approach.
Journal of Behavioral Decision Making, 18, p. 27.
3 Frisch D, Clemen R T (1994) Beyond expected utility: Rethinking behavioral decision research. Psychological Bulletin,
116(1), p. 46.
4 Edwards W (1954) The theory of decision making. Psychological Bulletin 51, p. 380-417.
5 Halpern DE (1997) Critical thinking across the curriculum. Mahwah, NJ: Erlbaum.
6 Cannon-Bowers JA, Salas E, Pruitt JS (1996) Establishing the boundaries of a paradigm for decision making research. Human
Factors, 38, p. 193-205.
7 Message from the President to the people of Kazakhstan “Kazakhstan - 2030: Prosperity, security and improvement of welfare
of all Kazakhs”.
8 Bennett David A, Julie A Schneider, Aron S Buchman, Lisa L Barnes, Patricia A Boyle, Robert S Wilson (2012) Overview
and Findings from the Rush Memory and Aging Project. Current Alzheimer Research 9, p. 646–663.
9 Finke Michael S, John Howe, Sandra J Huston (2011) Old Age and the Decline in Financial Literacy Working Paper.
10 Gamble Keith Jacks, Patricia A Boyle, Lei Yu, David A Bennett (2014) Aging and Financial Decision Making. Management
Science (published online in Articles in Advance, October 29).
11 Chasseigne G, Lafon P, Mullet E (2002) Aging and rule learning: The case of the multiplicative law. American Journal of
Psychology, 115(3), p. 315-330.
12 Johnson M (1990) Age differences in decision making: A process methodology for examining strategic information processing.
Journal of Gerontology: Psychological Sciences, 45(2), p.75-78.
13 Carver C, M Scheier (2004) Perspectives on personality, 5th edition. New Jersey: Pearson Education.
14 McCrae R (2009) The Five-Factor Model of personality: consensus and controversy, in Coor P and G Matthews.The Cambridge
Handbook of Personality Psychology. Cambridge: Cambridge University Press.
15 Roberts B and Robins R (2000) Broad dispositions, broad aspirations: the intersection of personality traits and major life
goals. Personality and Social Psychology Bulletin 26, p. 1284-1296.
16 Mooradian T and J Olver (1996) Shopping motives and the Five Factor Model: an integration and preliminary study. Psychological
Reports 78, p. 579-592.
17 Furnham A (1981) Personality and activity preference. British Journal of Psychology 20, p. 57-6.
18 McClure R (1984) The relationship between money attitudes and overall pathology. Psychology: A Quarterly Journal of
Human Behaviour 21, no. 1: 4-6.
19 Fodor M, FüredinéKovács A, Horváth Á, Rácz G (2011) Consumer behaviour, Perfekt Publishing House, Budapest, Hungary.
20 Pató G Sz B (2014) A model consisted of 5 tetrahedral network, as a scientific research appliance, Social Educational Project
of Improving Knowledge in Economics, Journal L’Association 1901 “SEPIKE” Vol 4 p. 63-68.
