Article Author: Prof. Dr. Dogan Kutukiz

This study was conducted to reveal the change in individuals' spending and savings and how they behaved during the COVID-19 Pandemic period. Psychological and sociological behaviors such as fear and anxiety in individuals prevent them from making correct and rational decisions. In the literature, there are two different approaches to spending, saving and investment decisions: One is Efficient Market Approach put on by Fama, according to which information is clear and reflected in the market and individuals act rationally in line with this piece of information. The other is the expectation approach put on by Kahneman and Tversty. It is the approach that they are affected by sociological and anthropological events and as a result they will not act rationally. In the early days of the COVİD-19 Pandemic, it was observed that there was fear and anxiety all over the world, individuals stocked food and many other products with the concern that there would be a food shortage, spending patterns changed around the World. Individuals are affected by sociological and anthropological events and as a result they do not act rationally and this confirms the behavioral finance approach put on by Kahneman and Tversky. Additionally, we can say that the financial literacy levels of countries and the changes in people's savings and expenditures during the Covid-19 pandemic are related to the financial literacy levels of individuals living in different countries.

Keywords: COVİD-19 Pandemic; Behavioral Finance; Financial Literacy; Spending; Savings; Investment

Article Review Status: Published

Pages: 13 - 22

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