Save or spend: financial literacy of the population

Abstract

The article considers the financial literacy of the population from the standpoint of financial knowledge, skills and abilities. It's shown that not only financial knowledge is relevant from the point of view of financial literacy, but also financial skills that can help to spend finances wisely, invest and save. A low level of financial literacy has negative consequences not only for the individual, but also for the state and society. It leads to the impoverishment of the population, the risks of credit indebtedness of individuals, an increase in financial fraud, and a decrease in demand for financial products. The author presents approaches to understanding financial literacy in economic, psychological and sociological aspects. Representatives of economic sciences note that financially literate individuals not only manage their budget, but are also knowledgeable about banking and insurance services, and manage their financial future. Representatives of psychological sciences associate financial literacy with security/insecurity. If individuals have developed financial self-awareness, there is a desire for control, then a sense of security is more common. With financial illiteracy, there is a sense of anxiety, negative assessments of what is happening, anxiety and dissatisfaction with life. From a sociological point of view, financial literacy is considered in the context of the theory of social behavior. The article presents the results of an empirical study of megalopolis residents regarding financial literacy. The skills of saving behavior, investment behavior and lending are considered. The conclusion is made about the need to increase the level of financial literacy.