Financial consulting in personal finance management as an important factor in the development of the securities market

Abstract

The theoretical foundations of financial consulting in personal finance management and its significance in the financial life of the country's households are characterized. The dynamics of Ukrainian households investing in securities and the structure of the consulting services market in Europe are analyzed. The weak influence of personal finance on the development processes of the securities market in the current unstable conditions of economic development is revealed, namely: a high share of consumer spending in the household budget, a low level of trust in the financial sector, the absence of a developed investment market in Ukraine, a low level of financial literacy of the population, negative socio-economic consequences of the spread of COVID-19, and the existing military-political situation caused by the full-scale military invasion of the Russian Federation into Ukraine. The range of services for managing personal finances and conducting operations with stock instruments provided by financial institutions and independent financial consultants is disclosed. The expediency of reorientation of managers of financial institutions working in personal finance management from the format of salesmen to the format of financial consultants is emphasized as a key factor in the development of the securities market. The key areas of development of financial consulting in personal finance management are identified – intensification of consulting activities of financial institutions and integration of joint efforts of financial institutions with independent financial consultants. The article suggests the encouragement of the creation of consulting companies specializing in financial and investment consulting exclusively for individuals by establishing benefits in the taxation of their profits and simplifying the registration and licensing procedure. The results of the positive indirect influence of financial consulting on the processes of development of the securities market are outlined: reduction of the information asymmetry of the stock market; strengthening of the level of financial security of households and increase of their confidence in the securities market; an increase of the volume of securities trading on the market with the participation of households.