Financial literacy and individual saving behaviors: The case of Ankara province

Since second half of the 20th century the process of financialization has accelerated along with technology and globalization. As a result of diversifying and enhancing financial markets in terms of its scope, individuals who would use this field well and who would manage his/ her behavior and attitude in terms of finance became important both for individual and for society. Individual that knows instruments of investment and saving and interprets them well may influence shaping of the market. Also it is an undeniable fact that contributions of individual savings are necessary for a country's economic development, and healthy growth. Hence at this point it is significant to what extent financial knowledge, behaviors, and also certain demographic qualities impact on individuals' decision to save. If financial literacy has a strong influence on individual savings it would be aimed at this direction through appropriate policy tools, and education channels. Within this framework, the primary goal of this working is to calculate financial literacy (knowledge, attitude, and behavior) level of citizens living in Turkey's capital Ankara with demographic qualities and to examine whether these factors has a meaningful impact on individual saving behavior. Accordingly, 760 citizens living in Ankara are surveyed and the results are tested by SPSS program. As a result of analyze, it might be said that citizens living in Ankara are advanced in terms of financial literacy. There is a important relation between level of financial knowledge, savings behavior and demographic qualities. People who are graduates of master/ PhD level, aged 25-30, and parents of one child occupies the top segment from the standpoint of financial literacy. On the other individuals who has poor financial knowledge, graduates of elementary school, married with children values the saving behavior more. In accordance, it is understood that, individuals who has higher levels of financial knowledge need education for demonstrating saving behavior.