Peculiarities of household use of financial instruments

Abstract

The article emphasizes the importance of managing household resources as independent economic entities. It establishes that the efficiency of financial management depends on income levels, expenditure stability, and savings availability. Key banking products such as deposits and loans remain essential for safeguarding funds and financing immediate needs. Investment tools, including stocks, bonds, real estate, and government securities, enable households to grow their capital but require knowledge and willingness to take risks. Risk management through insurance programs is a crucial part of financial strategy, providing financial security in unforeseen circumstances such as illness, loss of work capacity, or property damage. Future planning involves accumulative retirement funds and insurance programs that help households build financial reserves to ensure a comfortable standard of living in retirement. The study highlights that the development of financial technologies creates new opportunities for household financial management. It underscores the importance of financial literacy, which significantly influences households ability to effectively use tools and make informed financial decisions. The article notes that financial literacy is a key factor in households making informed decisions about using financial instruments, while a lack of knowledge can lead to mistakes such as excessive credit use or unreasonable investments, thereby increasing financial risks.