The authors of this paper seek to understand the needs for financial education among three groups of migrants in Armenia: (1) people who moved to Armenia or within the country for work, including workers’ family members; (2) official refugees to Armenia and those moving to the country for similar reasons; and (3) Armenian citizens who migrated to another country but then voluntarily returned or were deported back to Armenia. The methodologies were group discussion with migrants and the review of government data, such as from the Household Living Conditions Integrated Sample Survey conducted by the Armenian government’s Statistical Committee.
Of the three groups studied, migrant workers make up the largest portion, followed by refugees and, lastly, returning Armenian citizens. Among the participating households, 11 percent had savings and 21 percent were in debt.
Through roundtable discussions and focus groups, the researchers asked whether participants would like to receive financial education and, if so, how. The vast majority expressed a preference for classroom training, but most also were open accessing such information through online training and “social networks.” However, in contrast to migrant workers and refugees, returning Armenians were generally uninterested in financial literacy classes, believing their level of knowledge to be sufficient. To address this, the researchers recommended using mass media to stress the importance of financial literacy to both migrants and the public at large. In terms of teaching financial literacy, the researchers underscore the importance of breaking information into small and easily comprehensible portions to prevent “information overload.”
The topics that migrants and their household members expressed the most interest in were: (1) the costs of travelling for work and how to access Armenia’s financial system; (2) how to make informed financial decisions in general; (3) loans, including how much it is reasonable to borrow; (4) savings; (5) remittances; (6) budgeting; and (7) consumer protection.
This study was commissioned to the Caucasus Research Resource Centre – Armenia by the Germany-based Savings Banks Foundation for International Cooperation with financial support from the German Ministry for Economic Cooperation and Development. The research will contribute to the Central Bank of Armenia’s National Financial Education Strategy 2020-2024.
This is a summary of a research report by Heghine Manasayan, Susanna Karapetyan, Sonya Mrysan, Ruben Yeganyan and Sona Balasanyan; published by the Caucasus Research Resource Centre – Armenia; May 2020; 48 pages; available at https://www.findevgateway.org/sites/default/files/publications/submissions/68746/Financial%20Literacy%20for%20Migrants%20-%20Mapping%20and%20Needs%20Assessment_ARM.pdf
By Madigan Ruch, Research Associate
Sources and Additional Resources
Central Bank of Armenia website
https://www.cba.am/
German Ministry for Economic Cooperation and Development website
https://www.bmz.de/
Savings Banks Foundation for International Cooperation website
https://www.sparkassenstiftung.de/
Statistical Committee of the Republic of Armenia website
https://www.armstat.am/
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