TENDENCIES OF FINANCIAL BEHAVIOR OF EUROPEAN HOUSEHOLDS

Abstract

Households, as an institutional sector, are active actors in financial relations in the national economy. There is no consensus on explanations of certain features of financial behavior of households, its impact on the formation of the net worth of their assets. The aim of the study is to identify and explain trends in the financial behavior of European households in view of the formation of their wealth. In the process of research the following methods were used: statistical analysis of dynamics, structural analysis – to study the indicators that characterize the financial behavior of households; economic and mathematical modeling – to build a model of dependence of household wealth on the structure of their financial assets; abstract-logical method – for making conclusions. The study of financial behavior of EU households revealed: excess of disposable income over expenditures, growth of savings and wealth of EU households, high borrowings, which increase in times of crisis, especially in countries where financial assets are concentrated in insurance or pension funds. The steady tendency to expand investments in Pension Funds, even in times of crisis, is highlighted. It is emphasized that savings directed to the financial assets of households are the main impetus for long-term economic growth of the country. It is established that 76.02 % of the variability in the total net asset value of households is explained by the structure of financial assets: the growth of the share of deposits in financial assets of households has the least impact on their wealth, while the share of securities (excluding shares) and share investments in insurance funds. The practical significance of the obtained results is to substantiate the need to regulate the behavioral determinants of households in terms of economic education, financial literacy, state support for the development of a strong banking system and attractive conditions for deposits, insurance and private pension funds, securities market.