The Impact of Risks on the Choice of Household Financial Strategies in the Context of the COVID-19 Pandemic

Abstract

The article examines the features of the influence of various risks on the determination of the financial strategy of households. During the analysis of scientific literature on this issue, it was revealed that the concept of “financial strategy” is often identified with the concept of “financial behavior” of households. The lack of fundamental research on this topic is predetermined by the fact that in our country, for a long period, relations between economic entities were built on the basis of an equalizing distribution, which did not allow the population of our country to develop a model of financial behavior that allows assessing the risks of reduction or loss of income and savings. In addition, a number of crises that the domestic economy went through after the collapse of the USSR influenced the growth of mistrust in financial institutions. In this regard, a low level of objective assessment of the risks existing for household finances is recorded. In addition, in the context of the COVID-19 pandemic, all economic indicators have shifted, and at the same time, risks such as job loss and depreciation of savings have increased. The author came to the conclusion that in these conditions, the choice of the financial strategy of households should be aimed at preserving the existing income and savings, while the investment strategy becomes especially risky, and therefore it is not possible to predict the actual results.