Financial Literacy Gap in Georgia — Why Are Households Remaining in the Economic Risk Zone?

Despite the spread of financial technologies in Georgia — mobile banking, QR payments, and digital wallets — a large portion of the population still lacks the financial knowledge needed to make sound decisions. This isn’t simply a matter of technological access but reflects a deeper systemic gap in financial education.

According to the OECD’s 2020 findings, the financial knowledge and behavior score for Georgian adults fell in the low 50–60% range — one of the weakest in Europe . PISA 2022 results showed that Georgia ranked 19th out of 20 countries in financial literacy among teenagers , highlighting the lack of foundational skills in both youth and adults.

While credit use is widespread, financial planning is not. As of early 2024, consumer credit to individuals amounted to 26% of Georgia’s GDP, a drop from previous years but still a notable share. 

These figures indicate a mismatch: while people use financial services actively, many do so without a proper understanding of what debt means in practice. PISA surveys confirm that Georgian youth struggle with concepts like interest rates and repayment terms, and this often extends into adulthood, where families rely on intuition, emotion, or informal advice when making financial choices.

The impact is particularly acute in rural areas and small towns, where access to banks and financial advice is limited. Residents in these regions are more likely to turn to high-interest loans or informal borrowing, exposing them to long-term debt traps. Often, families underestimate the real cost of credit — overlooking compounding interest, repayment schedules, or foreign currency risks.

While public and private initiatives for financial education do exist, they haven’t yet resulted in wide behavioral change. One-off workshops or short-term campaigns are insufficient to build the skills required for budgeting, debt management, or future planning.

To reduce this risk zone and empower households, Georgia must pursue a coordinated financial literacy strategy:

• Integrate financial education into public and private school curricula;
• Expand access to clear, practical digital tools that help users calculate and understand credit and savings;
• Launch nationwide public campaigns that explain financial concepts in relatable, everyday terms — for example, how a loan really works, when it is useful, and when it becomes dangerous.

Without these steps, many Georgian families will remain trapped in a cycle of poorly informed financial decisions — vulnerable to inflation shocks, unemployment, or future debt waves. Bridging the financial literacy gap is not simply about education — it’s about enabling people to regain control over their economic lives.