Tashkent, Uzbekistan (UzDaily.com) — In recent years, there has been a noticeable increase in interest in personal investments and financial literacy among the population in Kazakhstan. We spoke with Zhanna Kashenova, the Director of Educational Projects at Freedom Finance Global, about how the country achieved such a level of awareness and what steps are needed to consolidate and further develop this trend.

In an interview for UzDaily, Zhanna Kashenova shared her insights on the financial market situation in Kazakhstan and discussed how education and access to information empower people to confidently pursue financial independence.

In Kazakhstan, more people are beginning to realize the importance of personal investments and are putting their money into stocks and other assets. What do you think has contributed to this level of financial literacy among the population?

- I completely agree with you; the level of public awareness is increasing year by year. People are recognizing the importance of using various financial tools in their lives. In my opinion, the growth of financial literacy in Kazakhstan is the result of several factors.

Firstly, access to information has become much easier due to the internet and social media. People have started actively enhancing their financial literacy through online courses, blogs, and webinars, which have opened their eyes to investment opportunities. For example, in the past five years since the establishment of the Freedom Academy educational center, over 35,000 people have attended our courses and seminars. We are indeed witnessing a growing interest in investment topics related to the stock market.

Secondly, it is worth noting the efforts made by the government. Kazakhstan has established concepts aimed at improving financial literacy. One such concept is designed for the period from 2020 to 2024. Its implementation involves press meetings, the creation of methodological resources, and online platforms. For instance, the website fingramota.kz was created under this concept, where you can find a wealth of useful information.

Additionally, investing has become very accessible. One simply needs to download an app, register, and start purchasing assets. This process has become simple and attractive for investors.

Moreover, in my opinion, real examples of successful investors have encouraged people to consider their savings seriously.

All these factors combined have contributed to the better financial understanding among the people of Kazakhstan and their recognition that personal investments are not just a means of saving but a path to financial independence.

In Uzbekistan, the culture of investing has not yet become widespread. What steps do you think should be taken to change this situation and motivate people to invest part of their income in assets?

- In my opinion, awareness is key. Informing and educating the population is one of the crucial steps toward developing a culture of investing. We need to conduct educational seminars and webinars and create informational resources about how financial markets operate, the types of investments available, and how to manage finances effectively. The more people know about investments, the more willing they will be to invest their money.

Another important step is to develop the market for financial instruments. We need to provide a variety of options for different categories of investors, from beginners to experienced ones. This will allow people to choose suitable investment opportunities and understand the associated risks.

I firmly believe that if we focus on educating the population, provide access to a variety of investment products, and make the investment process simple and understandable, the culture of investing will begin to thrive actively.

What are the main risks and benefits of investing for those just starting out in this field? What advice would you give to beginners?

- There are many advantages to investing. Firstly, it offers the opportunity to increase capital and achieve financial independence. Investing can help reach financial goals, whether it’s for retirement, buying a home, or funding children’s education. Finally, it can create passive income, allowing you to use your resources more effectively.

However, it is essential to remember that investments always carry risks. The market can be unpredictable, and beginners may face significant price fluctuations. This means that even with the right investment choices, there is a risk of financial losses.

From this, my first piece of advice is: do not invest money that you are not prepared to lose. Second, diversify your assets to reduce risk and protect your savings with other, more stable investments. Diversification is an investor’s best friend.

It’s also important to note that a lack of experience can lead beginners to make emotional decisions and react to market fluctuations, resulting in hasty actions that may worsen their situation. For instance, someone might panic due to a drop in stock prices and hastily sell their assets at a loss.

Therefore, my next piece of advice is: stay aware of the current market conditions, but don’t let emotions drive your decisions based on minor economic news or fluctuations. These changes are beyond your control, and such occurrences will happen constantly.

And, of course, I would strongly advise every beginner investor to start with self-education in this area. Begin by learning the basics: read books, watch webinars, connect with experienced investors, understand different types of investments, and clarify your financial goals. This will significantly aid you in your investment journey, as it is, in a way, a science.

Finally, not all investments are equally transparent, and it’s essential to be wary of fraud. It’s vital to work only with licensed brokers and avoid unverified or unreliable information sources.

Be cautious when receiving unsolicited investment offers or promises of quick and high returns. Exercise special caution when dealing with unfamiliar individuals proposing investment opportunities, and thoroughly review all documents and contracts before signing them.

What role do educational programs and courses play in shaping the financial literacy of the population? Can you provide examples of successful initiatives in Kazakhstan?

- The significance of educational programs in forming the financial literacy of the population is quite high. They help people understand how to manage their finances, plan budgets, and use credit resources correctly. By learning the basics, individuals can be more confident in their financial decisions and avoid common mistakes.

The collaboration between the state project “Financial Literacy” and the educational center Freedom Academy has been an important step in raising public financial awareness. We combined our efforts to create accessible and intuitive resources that help people grasp the fundamentals of finance.

As part of this joint initiative, we conduct live broadcasts where financial experts share their knowledge, answer viewers’ questions, and provide practical advice on personal finance management.

Moreover, Freedom Academy, through the “Financial Literacy” project, developed a video course covering various aspects of financial literacy. The course includes topics such as budget planning, investments, and lending. These materials are available online, allowing anyone interested to study them at their convenience.

What are the main misconceptions people have about personal investments? How can we overcome these barriers and instill a more rational approach to personal finance management in the population?

- From my experience, one common misconception is the belief that significant amounts of money are required for successful investments. In reality, one can start with small investments, which can grow into substantial sums over time.

Another myth is that only financial geniuses can invest. This is not true. Learning the basics and utilizing available resources can be sufficient.

To overcome these barriers, it is essential to raise public financial literacy. We need to continue conducting seminars and webinars. Meetings with experienced investors can play a significant role and provide motivation for people to start investing. The key is to change the perception of investing from something inaccessible and intimidating to the belief that anyone can learn to manage their finances.

In your opinion, what conditions should the government create to stimulate investment among the population and enhance financial literacy in the country?

- I would start by answering the question of why the government should stimulate investments among the population.

For the development of any country’s economy, the stock market plays a crucial role as a mechanism for capital redistribution. It is important to form a mass investor class in the country. To achieve this goal, several steps must be taken:

1. Educational Programs: Launch national educational initiatives aimed at improving financial literacy. These could include courses, webinars/podcasts, investment shows, seminars, and online training explaining the basics of investing, how the stock market works, and the importance of long-term investments.

2. Creating Favorable Conditions: Introduce tax incentives and preferences for individual investors. Reducing the tax burden on investment income can encourage more people to participate in the stock market. For example, in Kazakhstan, individuals are exempt from paying tax on capital gains from securities listed on the official stock exchange.

3. Information Accessibility: Ensure transparency and availability of information regarding financial instruments and investment opportunities. Develop online platforms and mobile applications to simplify the process of opening and managing brokerage accounts.

4. Government Programs and Initiatives: Successful programs can be drawn from the experiences of other countries. For example, in the UK under Margaret Thatcher, a program of public IPOs was conducted where state companies were listed at prices below fair value, accessible only to citizens. This led to an increase in the shareholder percentage among the population from 4% to 25%.

5. Examples of Successful Local Initiatives: In Kazakhstan, in 2012, a public IPO was conducted for KazTransOil JSC, where shares were offered to citizens at a discount to fair value, allowing participants to profit from price growth and dividends.

6. Regulation and Investor Protection: Establish a reliable regulatory system and protect investors’ rights. This includes combating fraud, ensuring fair trading conditions, and transparency in the activities of brokerage firms.

Creating such conditions will stimulate investments among the population and enhance financial literacy, which in turn will contribute to economic development and sustainable growth in citizens’ well-being.