Abstract:
This research aims to explore how financial literacy relates to decision-making biases among
young adults in Astana, Kazakhstan. It focuses on three biases: overconfidence (overestimating one’s
knowledge), loss aversion (fearing losses more than valuing gains), and present bias (preferring
short-term rewards over long-term benefits). Data was collected through an online survey of 200
university students. Participants completed a standardized financial literacy test and behavioral tasks
measuring these biases.
The analysis used ordinary least squares (OLS) regression models. Each model examined the
effect of financial literacy on each bias while controlling for gender, age, academic major, and education
level. Results show that higher financial literacy is significantly associated with lower overconfidence
(β = –0.740, p < .001) and lower present bias (β = –0.084, p = .033). However, loss aversion appears
unaffected by literacy levels (β = 0.009, p = .823).
Among demographic variables, gender, academic major and education level had significant
effects. Male and Economics & Business students exhibited higher levels of overconfidence and present
bias. In contrast, Humanities & Education students reported lower levels of overconfidence but higher
levels of present bias. Graduate students showed significantly lower overconfidence compared to
undergraduates.
These findings highlight the need to combine financial education with behavioral strategies.
Future research should use longitudinal or experimental methods and more diverse samples to examine
causal effects across different demographic groups.
