FINANCIAL LITERACY AS A MAIN PROBLEM OF MODERN SOCIETY

ABSTRACT

This article examines financial literacy in our time as the main problem of people, as they are increasingly faced with financial problems, fraud and improper money management. The article presents the level of financial literacy in the Russian Federation, which demonstrates a low level among the population. This is influenced by various factors: economic, educational, political, behavioral, and financial skills. It was determined how to improve financial literacy: study, avoid unnecessary spending, invest, not be naive, verify the accuracy of information, and others.

Keywords: financial problems, financial literacy, financially literate person, fraud.

Nowadays, modern society is increasingly faced with financial problems, and all because people do not know how to manage money, they are financially illiterate people. What does this mean?

Financial literacy is the knowledge and skills of a person to manage their income and expenses competently, the ability to live in conditions of financial well-being and not be afraid that income will not be enough for important things [2].

Considering the role of financial literacy in the modern economy of the country, we can say that it occupies an important place and affects the life of modern society.

After all, thanks to the financial literacy of the population, the level of economic development of the country increases. A financially literate person knows how to correctly distribute their income, understands the investment of various sectors of the economy, due to which welfare increases, production grows and the level of poverty decreases. There are fewer bankruptcies and financial crises in the country [1].

People's personal finances depend on financial literacy, because those who know how to prioritize spending money, plan their budget, pay off loans correctly and generally avoid debt, become financially secure and independent.

Family well-being also depends on financial literacy, as it helps improve relationships between each other, achieve common financial goals and prevent financial conflicts if each family member knows how to manage money.

A financially literate person is protected from financial problems and fraud.

Therefore, we can say that the development of financial literacy in the country is positive, because it helps society improve and maintain stable economic positions [1].

Analyzing financial literacy in Russia, we can say that the level is unfortunately not high. Only 70% of the population has a high or average level of knowledge in the field of finance, the remaining 30% - low.

If we compare the level of financial literacy over the past 7 years, we can see that it has grown, as shown in Table 1.

Table 1.

Level of financial literacy of Russians in points

In 2024, this index was 12.77 points, which is 5.3% higher than in 2018.

In Russia, the most financially literate people are the generation over 35 years old, who have higher education and are most often residents of large cities.

The younger generation, the rural population, and unemployed people have a low level of financial literacy [4].

Considering the dynamics of the population with different levels of financial literacy, we can say that from 2018 to 2024 the indicator grows for people who have a high or average level, and the indicator, where people have a low level, decreases, is presented in Table 2.

Table 2.

Dynamics of the population in %, with different levels of financial literacy

So to speak, the growth of the population's knowledge about finances is proceeding confidently and systematically [4].

Studying this state of financial literacy in modern times, we can cite several factors that influence this:

1) the economic situation of Russians - people who live in poverty most often do not know how to manage money wisely, and do not have the opportunity to gain knowledge in the field of finance;

2) education - people who have received higher education have more knowledge obtained in educational institutions;

3) the lifestyle of citizens and their consumer culture - people who save money, take out loans for future purchases of goods and services, also affect financial literacy;

4) personal financial skills - the ability of people to spend money wisely and distribute their income;

5) political factors - the influence of political institutions and the state;

6) behavioral factors - people who are self-confident, have self-control, and are able to foresee risks [3].

Financially illiterate citizens face many financial problems:

- fall under the influence of scammers and remain deceived;

- accumulate a lot of debts that they cannot cope with;

- are left without savings for the future;

- face financial instability;

- are underinformed about financial products, which then leads to unjustified decisions when choosing financial instruments and solutions;

- have no experience in how to effectively manage investments, which leads to loss of money;

- and many other financial problems [5].

To avoid such problems, you can improve your financial literacy by:

- read more books, different financial articles;

- learn to plan your budget, avoid unnecessary and unnecessary expenses;

- learn how to invest your money;

- follow the news happening in the field of finance;

- check all information for reliability, especially financial transactions;

- do not be naive and do not trust too fast and easy earnings, profitable offers;

- do not tell and show your personal financial data, do not post on questionable sites, use strong passwords;

- contact financial consultants if you have questions [6].

Currently, there are various projects in Russia to increase the level of financial literacy of the population:

- financial trainings - many companies and educational centers conduct trainings on financial literacy;

- finance lessons in schools - Many schools have started to introduce financial literacy lessons for students that help them use money wisely;

- financial applications and games - there are many mobile applications with which people improve their financial knowledge;

- online courses to improve financial literacy - many lectures are held that help study financial topics.

If you use these projects in your life, it will lead to an increase in personal knowledge in the field of finance and will help you become a financially literate person who knows how to clearly and competently manage your money [6].

References:

1. Baranova, A. Yu. Financial literacy: a tutorial / A. Yu. Baranova. - Moscow: INFRA-M, 2024. - 225 p. - (Higher education). - DOI 10.12737/1865717. - ISBN 978-5-16-017667-3. - Text: electronic. - URL: https://znanium.ru/catalog/product/2110953 (date accessed: 04/22/2024)
2. Garnov, A. P., Basics of financial literacy: a tutorial / A. P. Garnov. - Moscow: Rusains, 2024. - 192 p. - ISBN 978-5-466-04657-1. - - Text: electronic. - URL: https://book.ru/book/952061 (date of access: 22.04.2024).
3. Reznik, S. D. Financial literacy of Russian students: a key condition for ensuring economic independence: monograph / S.D. Reznik, M.V. Chernigovskaya, O.A. Sazykina; under the general editorship of Doctor of Economics, prof. S.D. Reznik. - Moscow: INFRA-M, 2024. - 331 p. - (Scientific thought). - DOI 10.12737/2091440. - ISBN 978-5-16-019142-3. - Text: electronic. - URL: https://znanium.com/catalog/product/2091440 (date of access: 23.04.2024).
4. Spiridonova, L., Article of the Analytical Center NAFI [website] / Index of financial literacy of Russians - 2024 / L. Spiridonova. - Moscow, 2024. - Text: electronic. - URL: https://nafi.ru/en/analytics/indeks-finansovoy-gramotnosti-rossiyan-2024/ (date of access: 04/23/2024).
5. Shestemirov, A. A., Current issues of financial and legal literacy in modern society: a collection of articles / A. A. Shestemirov. - Moscow: Rusains, 2022. - 168 p. - ISBN 978-5-4365-9163-6. - Text: electronic. - URL: https://book.ru/book/943482 (date of access: 04/23/2024).
6. Shitov, V. N., Fundamentals of financial literacy: a tutorial / V. N. Shitov. - Moscow: KnoRus, 2024. - 250 p. - ISBN 978-5-406-12490-1. - Text: electronic. - URL: https://book.ru/book/951666 (accessed: 04/23/2024).