Abstract
Low financial literacy of population hinders the financial market development, limits the possibilities of using the savings for investing and creating the additional capital in the country. At the state level it results in inflation, the budget deficit creation, a decrease in country’s gold and foreign exchange reserves, an increase in internal and external government debt. The article analyzes the approaches to understanding the concept of financial literacy, tools for its measuring and comparing at micro and macro levels, dynamics of savings and gold and foreign currency reserves, peculiarities of financial literacy through the analysis of dynamics and structure of revenues and expenditures of the government budget and the population of Ukraine. Factors influencing the financial literacy of the population have been systematized. The findings give an idea of creating the optimal managerial influence based on the estimation of financial literacy of the Ukrainian population with the help of specific statistical indicators to expand the possibilities of such influence and to regulate the economic processes to achieve the financial stability of the state and the population. The study showed low financial literacy at both population and state levels. However, at the micro level, creating the credit relations, as well as income, expenses, and savings is more effective than at the macro level.
Highlights
In the contemporary economic context, the investment and socio-economic capacity of the country’s development are becoming increasingly dependent on the quality of human capital
The study has indicated a lack of financial literacy at both the micro and macro levels, which does not allow for an effective system of income, costs, and savings
If the population income exceeds it expenses, a deficit of funds is created at the level of the government budget formation
Summary
In the contemporary economic context (new geopolitical challenges, declined investor activity, reduced range of activity of many large Ukrainian companies, etc.), the investment and socio-economic capacity of the country’s development are becoming increasingly dependent on the quality of human capital. Consumers who do not understand the concept of interest payment spend more on transaction fees, increase the debt and pay higher credit interest rates (Lusardi, & Mitchell, 2007; Lusardi & Scheresberg, 2013) In Ukraine, financial literacy is taught only in specialized financial or economic schools and in some ordinary schools as an experiment This is not just about the micro level because to build a country, it is necessary to raise the financial literacy of the population to a much higher level, to a macro level where the financial actions of citizens will have a significant impact on the state’s economy. Inadequate attention of financial sector entities to the problem of increasing the population’s financial literacy leads to an increase in information asymmetry and financial risks, to the limitation of the level and quality of financial inflows from the citizens, to the strengthening of disparities in the development of the national economy
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