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Think about joining the work force right out of university, only to realize that you have no clue how to handle your salary, pay rent, or even save for the future. This is the reality that many young people in Kazakhstan face today. Without even basic financial knowledge, individuals are forced to make difficult decisions on their own and frequently end up making mistakes that have long-term consequences. 

Overall, financial illiteracy has emerged as a long-term threat to the stability of the nation’s economy as well as the economic prospects of its citizens, and it deserves serious attention.

Most young people in Kazakhstan lack elementary skills of managing small amounts of cash, saving or handling credit. Although the curriculum of education comprises many subject areas, it lacks a focus on imparting important life experiences. As a result, young people enter adulthood without basic skills on how to manage debt or budget for future expenses. Financial instability among a sizable section of the populace has an adverse effect on economic growth and stability in addition to personal struggles. 

The first strategic actions taken in personal finance, such as borrowing money or using credit cards, often set young people on either good or bad financial paths. For instance, a significant portion of the youth in Kazakhstan applies for loans either for personal use or informal financial loans without understanding the implications of such actions. This can result in deep debt, to the extent that they cannot finance other activities such as starting a business or buying a home. 

To address this issue, financial literacy should be incorporated into the curriculum at all levels of education. Young people should be taught about issues concerning budgeting, saving and investing at an early stage so that they are well-prepared to manage these processes throughout their lives. Useful knowledge about effective budgeting, objectives for everyday expenses, saving, and other practices can help build a solid foundation that avoids excessive use of credit and other risky financial decisions.

Establishing such programs is not enough; we require qualified teachers who can effectively explain these concepts to achieve the desired results. Currently, there is a lack of qualified teachers in Kazakhstan at schools and universities who can competently and confidently teach the principles of financial literacy. Additionally, involving professionals from the finance sector to conduct workshops or seminars could help bring both theory and practice to life. 

Furthermore, Kazakhstan can learn from examples of other countries. Singapore, for instance, integrates financial education into its school system, resulting in a financially literate generation. Similarly, schools in Finland emphasize mastering good financial skills at an early age, ensuring students grow up with sound financial knowledge. 

However, some may argue against introducing yet another subject to the curriculum, citing the already heavy demands on students and the scarcity of funding for schools. Others might argue that teaching children how to use, save, invest, and manage money should be the responsibility of parents. Financial literacy is not just another addition to the formal education system; it is a part of personal life experience that significantly impacts every aspect of an individual’s future. 

One of the tools that could enhance financial literacy includes financial applications and online classes. Such platforms would democratize knowledge and ensure that young people can learn various aspects of personal finance at their own pace. 

Investing in personal financial capability is not only an investment in the population but also in the future of Kazakhstan. By ensuring people understand finances, we can foster increased commonwealth, greater investment and more informed decision-making, which will contribute to national growth.

It is crucial for Kazakhstan to promote financial literacy as part of formal education, organize special workshops for teachers, and encourage families to engage with financial topics together with their children. In doing so, we can ensure that our younger generation creates better and safer lives for themselves and contributes to building a stronger nation. 

The author is Aigerim Kosbayeva, a graduate student of the Nazarbayev University Graduate School of Public Policy. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times. 

The market’s record year may have more room to run, with sentiment buoyed by recent outperformance and historical trends.

Stocks have notched all-time highs following President-elect Donald Trump’s victory earlier this month, as Wall Street remains optimistic over the incoming administration’s economic agenda despite looming tariff risks.

“Tariff threats may trigger near-term market volatility, but the fundamental backdrop remains supportive,” UBS Global Wealth Management’s Mark Haefele wrote in a note to clients on Wednesday.

This year, the S&P 500 (^GSPC) has notched more than 50 all-time closing highs, while the Dow Jones Industrial Average (^DJI) and Nasdaq 100 (^NDX) are not far behind.

Looking ahead, strategists suggest the market’s bull year could end on a positive note.

“At this point, you can’t deny that everything looks positive,” Michele Schneider, chief strategist for MargetGuage.com told me on Yahoo Finance’s Morning Brief, adding that investors should “stay with the momentum and stay with the trend.”

Using history as a guide, the odds are for that trend to be on the upswing. According to CFRA’s Sam Stovall, December is the S&P 500’s most consistent month of gains, with the greatest frequency of advances (batting average). It also has the lowest volatility — nearly 40% below the average for the other months since World War II.

During the month, the S&P MidCap 400 and SmallCap 600 indexes have outperformed other areas of the market, followed closely by the Utilities (XLU), Industrials (XLI), Materials (XLB), and Financials (XLF) sectors.

What sets this year apart is the election adding to the bullish sentiment. December historically ranks as the S&P 500’s second-best month of the year during election years, with an average return of 1.3% since 1950, according to analysis from Carson Group’s Ryan Detrick.

His analysis also found that strong year-to-date performance often increases the chances that investors will chase the market into year-end. Of the past 10 times the S&P entered December up more than 20%, the month of December recorded an average gain of 2.4%.

Looking further ahead, the potential for a Santa Claus rally — which is when stocks climb higher in the final five trading days of the year plus the first two trading days of the New Year — could further boost returns.

Stock Trader’s Almanac editor in chief Jeff Hirsch, who explains that Thanksgiving kicks off a run of solid bullish seasonal patterns for the market, recently wrote that he has “combined these seasonal occurrences into a single trade: Buy the Tuesday before Thanksgiving and hold until the 2nd trading day of the New Year. Since 1950, S&P 500 has been up 79.73% of the time from the Tuesday before Thanksgiving to the 2nd trading day of the year with an average gain of 2.58%.”

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The number of candidates completing chartered financial analyst exams is in stubborn decline as demand slides for a qualification once seen as essential for the profession.

The latest available results for CFA Institute, which oversees the tests, show 116,727 people sat all three levels of the exam in the first eight months of the year, down 2,735 on the same period in 2023.

Last year there were 163,000 exam registrations, 40 per cent down from the peak of 270,456 in 2019.

Margaret Franklin, chief executive at the CFA Institute, which oversees the qualification, said a downturn in growth from China was partly to blame.

Chinese and Indian candidates have boomed in number over the past decade as graduates overseas seek international investment qualifications that could lead to jobs with US and European investment companies. India’s exam registrations have doubled since 2014 to 31,600.

China’s growth rate “has slowed down, but it was hyperbolic before that,” she told the Financial Times, adding that “the CFA programme is still really highly regarded” in the country.

Candidates from India have taken up some of the slack, although she anticipates that growth from the South Indian nation will moderate.

The pandemic negatively affected the number of people attempting to qualify, especially among those under the strict lockdown regime in China. The CFA Institute has shifted to online testing but the new system took time to establish.

After a sharp dip in registrations during the pandemic, exam result numbers have shown no recovery. Pass rates overall have recovered to 46 per cent, having dipped to 22 per cent in 2021.

Whether the CFA makes a difference on the job front is what matters for candidates, some of whom see it as useful but not necessary.

“You’re not going to hire or not hire someone on the basis of having a CFA,” said Elise Badoy, head of Emea equity research at Citi. However, she said the qualification “helps for younger analysts”, and that for the first three or four years of their career “it’s definitely a positive thing”.

The slowdown comes at a time when structural changes in the asset management industry, such as the shift towards passive investment and private capital, threaten the relevance of holding a CFA.

CFA Institute has introduced new products like investment certifications in areas such as ESG and climate change. Candidates can now focus on course areas other than general portfolio management, such as private markets and wealth management. Case studies within the exam include the cryptocurrency sector.

“We are diversifying, trying to find the things that meet the needs of people in all stages of their career,” Franklin said.

To encourage more applicants, candidates for the Level I CFA exam can now be up to two years away from completing their undergraduate degree, up from one year previously. Franklin believes the CFA offers a “more meritocratic, less selective” qualification than a more expensive MBA from universities.

While she believes the worst of the pandemic effect has passed, the organisation has had to adapt to the slowdown.

“Do I think we are going to have the same hyper growth? No. Hyper growth in the business isn’t there any more.”