Zvarych M. Mechanism for providing households’ financial security in Ukraine

In the dissertation the approaches to defining the essence of the concept of "financial security of a household" are analyzed, its functions and features are highlighted. Factors and threats to household financial security have been identified. The necessity of improving the mechanism of ensuring the financial security of households is considered, its methodological principles and main components are defined. The scientific and methodological approach to the study of households’ financial security is substantiated. The system of indicators for assessment of financial security from the positions of the state and the household is developed. The state of mechanism of ensuring financial security of households in Ukraine has been critically evaluated. Problems, shortcomings and unresolved issues of functioning of this mechanism in terms of methods, tools and levers are revealed. The problems of ensuring households’ financial security in Ukraine are identified, including the reduction of real wages as a result of inflation, depreciation of the national currency, the unstable political situation, unemployment, the shadow economy, low trust in the banking system and the financial market in general, etc. A toolkit for ensuring the financial security of households has been developed, and a number of measures for improving the state influence on ensuring the financial security of households have been proposed. The necessity of improvement of the legislative base, in particular, the elaboration and adoption of laws in the sphere of protection of the rights to private property and protection of the rights of consumers of financial services is substantiated. The need to implement the financial literacy Strategy for households was emphasized. A range of banking products is proposed to increase households’ activity in savings and investment. Practical recommendations for households in the process of investing in real estate are given. A number of state influence measures on the processes of households’ financial security are proposed, namely: creation of the Agency for the guaranteeing of individuals deposits, which is conditioned by the need to develop effective guarantee and compensation mechanisms aimed at protecting the financial interests of households. Creation of an Information and Research Center for the study of households’ financial security provision issues is recommended, whose sphere of competence would include a permanent collection, analysis and generalization of relevant information regarding households’ financial security, preparation of necessary recommendations for households to prevent negative financial phenomena in their lives. It is emphasized on formation a constant need in every household to increase the level of financial literacy through organization of a system of continuous financial education, in particular through distance learning. Creation of clubs of financial volunteers, introduction of educational programs for increasing the interest of households in raising their financial awareness is proposed. The obtained results and the presented proposals are the information basis for the development of organizational and economic changes in the system of financial security of households.