Financial literacy in the system of determinants of financial behavior

the relevance of the study is determined by macroeconomic and social challenges (the increasing complexity of the financial environment, high household debt burden, insufficient savings for pension provision, vulnerability to fraud), the limitations of classical economic models based on the assumption of rational individual behavior, the need to study financial literacy as an element of the system of behavioral determinants, including cognitive distortions, psychological attitudes, social norms and individual value orientations. The aim of the research is to develop a financial awareness model to overcome existing limitations. Methods: the methodological basis of the research consists of the principles of conceptual modeling of levels of financial literacy, as well as empirical knowledge of the factors that cause the contradiction between the level of financial knowledge and the actions taken. Results: the study proposed a proprietary model of financial awareness, including four structural components: goal linking, understanding consequences, emotional regulation, reflection, and feedback. The findings help overcome self-control issues, combat impulsivity and a lack of understanding of long-term effects, and neutralize the influence of emotions that lead to irrational behavior. Conclusions: the financial awareness model is a necessary intermediate link in the three-level system «Literacy ? Awareness ? Maturity».

financial literacy, determinants of financial behavior, financial awareness, three-level system, financial maturity, level of financial knowledge, contradiction