Universal Journal of Accounting and Finance 9(3): 316-328, 2021 http://www.hrpub.org
DOI: 10.13189/ujaf.2021.090305
Demographic Analysis of Financial Literacy
Level in Azerbaijan
Nurkhodzha Akbulaev
1,*
, Matanat Mammadova
2
1
UNEC Turkish World Economic Research Center, Department of Economics and Business Administration, Faculty of Economics of
Turkish World, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan
2
Department of Economics and Business Administration, Faculty of Economics of Turkish World, Azerbaijan State University of
Economics (UNEC), Baku, Azerbaijan
Received July 13, 2020; Revised February 17, 2021; Accepted May 24, 2021
Cite This Paper in the following Citation Styles
(a): [1] Nurkhodzha Akbulaev, Matanat Mammadova , "Demographic Analysis of Financial Literacy Level in
Azerbaijan," Universal Journal of Accounting and Finance, Vol. 9, No. 3, pp. 316 - 328, 2021. DOI:
10.13189/ujaf.2021.090305.
(b): Nurkhodzha Akbulaev, Matanat Mammadova (2021). Demographic Analysis of Financial Literacy Level in
Azerbaijan. Universal Journal of Accounting and Finance, 9(3), 316 - 328. DOI: 10.13189/ujaf.2021.090305.
Copyright©2021 by authors, all rights reserved. Authors agree that this article remains permanently open access under
the terms of the Creative Commons Attribution License 4.0 International License
Abstract Financial literacy is knowledge that every
person needs in everyday life. Studying theory, mastering
practical skills, developing financial thinking - all this will
allow each of us to become financially successful.
Research Objective: The aim of this study is to ascertain
the financial literacy level of individuals living in Baku,
The Republic of Azerbaijan. 280 people between the ages
of 17-60 were involved in the survey, comprised of public
and private sector employees, self-employed, retirees and
students to attain this objective. Method: SPSS 25.0 for
Windows package program was used to evaluate the
research data. First of all, frequency was determined in the
research. While testing the hypotheses of the research,
t-test was applied for independent samples, and Mann
Whitney U test was used for comparison of two
nonparametric independent groups in the examination of
the differences between more than two groups. In addition,
the Chi-Square test was utilized to ascertain the degree and
direction of the relationship between the relevant variables.
Factor analysis has been practised to reduce the number of
basic dimensions or group, the variables to facilitate
understanding and interpretation of the relationships
between multiple variables. In order to decide on the
correctness of the answers given to the questions,
reliability analysis was performed. Results: In consequence
of research, the average level of financial literacy success is
determined to be 75% in Baku. Nevertheless, financial
literacy level of the participants differs according to
demographic variables such as gender, age, marital status,
income, profession, education level. Conclusıon: These
results can be used to guide policy makers where to place
more emphasis in terms of financial education for
Azerbaijans.
Keywords Financial Literacy, Financial Education,
Financial Behaviors
1. Introduction
Financial literacy is a process that enables individual
investors and consumers to improve their understanding of
the financial products and concepts, to measure their
current comprehension, financial risks and opportunities
optimally, to make more conscious choices among
alternatives, and to do all other effective activities to
upgrade the level of their financial well-being Kucukaslan
[1]. Financial literacy can be defined as the ability to
comprehend financial concepts and issues in order to take
the right decisions in the face of changing financial
conditions and to manage one’s own financial status
through financial planning Aksoylu at al. [2]. Financial
information literacy helps to manage earnings, especially
among those students who study non-commerce subjects
Liaqat at al. [3]. In this regard, the improvements in the
financial literacy of the individuals through various
education programs will probably raise the demand of