Financial literacy of the population and certain parameters, determining it

The study shows the role of human capital and financial literacy of the population in ensuring modernization reforms and socio-economic development of territories. It substantiates positive relationship between the growth of financial literacy and the development of national economy, financial institutions and financial market segments. The article discloses factors influencing the level of financial literacy, in particular, external and internal, and highlights the role of institutional, cultural differences, aspects related to trust in financial institutions and awareness of their activities. The aim of the work is to study some internal subjective factors (trust in individual financial institutions, degree of awareness of the situation in the financial market, etc.) that determine financial literacy of the population. Using statistical and sociological data, the author considers problems in the field of financial literacy associated with a low (in contrast to other G20 countries) level of knowledge and skills in the financial sphere, low activity of financial behavior, inconsistency of opinions of the population and financial organizations representatives about certain aspects of interaction with financial institutions. The article determines a population’s financial literacy level and shows that it differs spatially and according to socio-demographic characteristics of the population. It reveals that a financial literacy level can influence institutional trust of the population, frequency of comparing conditions for the provision of financial services by various organizations and other aspects of financial behavior. The author proves the need to improve financial literacy. The study shows that, despite a low financial literacy level, only one in three considers it necessary to improve knowledge and skills in the financial sector, about the same number of those who do not need financial education and do not think about its need. The paper presents measures to improve a level of financial literacy of the population, including specialized consultations, workshops and courses, etc.