INVESTMENT OF HOUSEHOLD SAVINGS IN CONTEXT OF THE INFLUENCE ON FUNCTIONING OF PUBLIC FINANCES IN THE CONDITIONS OF THE WAR

Abstract

Introduction. In the current extremely difficult financial and economic realities associated with Russia’s full-scale military invasion of Ukraine, studies of household savings as one of the potentially important sources of investment resources needed to end the war and further restore the national economy are of utmost importance. Therefore, the problems of active transformation of such savings into investments with the help of modern financial instruments operating in the financial market of Ukraine (primarily domestic government bonds and military bonds), which in the conditions of a full-scale war can become a significant resource for the development of public finances in general and support of the Armed Forces of Ukraine in particular, remain important. The purpose of the article is to study current trends in the investment of savings of domestic households in the context of a full-scale war and the impact of innovative instruments of such investment on the development of public finance in Ukraine. Results. The article analyzes the pragmatics of investing accumulated savings by Ukrainian households in the context of their impact on the development of public finance in the context of a full-scale war, identifies the advantages and disadvantages of each of the investment instruments under consideration and emphasizes the need to increase the level of financial literacy of Ukrainians in the context of the development of state-creating financial patriotism of the nation. Conclusions. Identification of the key advantages and potential risks of investing household savings during a full-scale war made it possible to substantiate the significant impact of such investment on the functioning of public finance in Ukraine and to justify the directions of intensification of investment processes at the level of domestic households in the current conditions.