Financial behavior of households in the context of the development of behavioral finance

Abstract

Introduction. At the end of the 20th century in the arsenal of traditional economic theory, there were not enough means by which it was possible to explain the not always rational behavior of economic subjects, which prompted the emergence of the concept of behavioral finance as a new direction of financial education. The subject of research of this concept was primarily the impact of emotional, cultural, psychological, social and other factors on the making of financial decisions by household members. Therefore, the use of the findings of the concept of behavioral finance in modern scientific research will provide an opportunity to justify, and therefore to a certain extent influence the irrational behavior of domestic households, to forecast and model their financial decision-making strategies, as well as to increase the level of financial literacy of Ukrainians. The purpose of the scientific research is to analyze the pragmatics of the formation and implementation of the financial behavior of Ukrainian households in the context of the development of the theory of behavioral finance and to highlight modern trends and current models of such behavior in the conditions of a full-scale war in Ukraine. Research methods: analysis and synthesis, system approach, statistical observation, comparative and logical-structural analysis, graphic interpretation of data, generalization. The main results of the study. It is emphasized that the behavioral model of financial decision-making is based on the main behavioral theories ("theory of prospects", "theory of investor behavior", "theory of noise trading", "theory of the efficiency of trader operations") and effects ("loss aversion effect", "status-quo effect ", "ownership effect", "ostrich effect", "certainty effect", "trap effect", "conservatism effect", "competence effect"). The factors, types and main models of financial behavior of households are singled out and the impact of financial literacy on their formation and implementation is substantiated. The consumer, saving and charitable components of the financial behavior of domestic households were analyzed and the current trends in their formation and implementation in the conditions of a full-scale war in Ukraine were investigated. Considerable attention is paid to the pragmatics of the formation of consumer and financial patriotism of Ukrainians and the specifics of using such a new instrument of citizens' savings as investing in military bonds. Conclusions. The article characterizes the main theories of behavioral finance, elucidates the essence of household financial behavior, defines its most common types, models and factors. Modern trends in the financial behavior of Ukrainian households are identified and analyzed through the prism of the concept of behavioral finance.