ISSN:
2181-3906
2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
900
CONCEPT AND THEORETICAL FOUNDATIONS OF FINANCIAL LITERACY
Embergenov Alisher
Lecturer, Karakalpak State University, Department of Accounting and Audit
Mirzanov Asadbek
Master's student of the Banking and Finance Academy of the Republic of Uzbekistan
Muratov Amir
3rd year student of Tashkent State University of Economics, Department of Finance and
Financial Technologies
https://doi.org/10.5281/zenodo.10887992
Abstract.
This article describes the content of regulatory documents adopted in our country
to improve the level of financial literacy of the population and their priorities. Scientific works of
foreign and domestic scientists devoted to financial literacy were also analyzed. The concept of
"financial literacy" based on the acquisition of financial and economic knowledge, skills and
abilities to make financial decisions is defined and their components are described.
Keywords:
financial literacy, human economic behavior, increasing popularity of financial
services, financial abuse, financial innovation, financial sector, mass media, financial thinking.
ПОНЯТИЕ И ТЕОРЕТИЧЕСКИЕ ОСНОВЫ ФИНАНСОВОЙ ГРАМОТНОСТИ
Аннотация.
В данной статье описано содержание нормативных документов,
принятых в нашей стране для повышения уровня финансовой грамотности населения и их
приоритеты. Также были проанализированы научные работы зарубежных и
отечественных ученых, посвященные финансовой грамотности. Определено понятие
«финансовая грамотность», основанное на приобретении финансово-экономических
знаний, навыков и умений принимать финансовые решения и описаны их составляющие.
Ключевые слова:
финансовая грамотность, экономическое поведение человека,
растущая популярность финансовых услуг, финансовые злоупотребления, финансовые
инновации, финансовый сектор, средства массовой информации, финансовое мышление.
The priority of scientific research to improve the theoretical aspects of improving the level
of financial literacy of the population in developed countries and increase the effectiveness of
national government programs, the development of targeted government programs to improve the
level of financial literacy of the population in developing countries with market economy,
improving the mechanism of their implementation, financial literacy programs. Scientific research
devoted to strengthening the position of financial organizations, including commercial banks, in
enriching them with the components of market economy, improving the level of financial literacy
of the population is becoming more active. During the years of independence in Uzbekistan, the
financial system was formed based on the requirements of market economy and is constantly
improving.
Decree of the President of the Republic of Uzbekistan of January 9, 2018 «On measures
for radical improvement of the activity of the Central Bank of the Republic of Uzbekistan»
Resolution № PF 5296 of April 13, 2021 «On measures for further development of the capital
market» Resolution № PF 6207 of January 28, 2022 «On the Strategy for the Development of New
Uzbekistan for 2022-2026» Resolution №PF60 of July 23, 2019 «On measures to increase the
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2024
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
901
popularity of microfinance services» Resolution № PQ 4400 [1], «National Strategy to increase
the popularity of financial services for 2021-2023», approved by the Coordinating Council for the
development and further implementation of the National Strategy to increase the popularity of
financial services and practical work on the implementation of these tasks defined in other
regulatory legal documents to varying degrees specified in the article.
Increasing the level of financial literacy of the population is a necessary part of rapid
development of any country participating in international economic relations, including modern
Uzbekistan. In such a situation, one of the main goals set by the government is to "equip" citizens
with information and educational tools for effective management of personal funds and, as a
consequence, equal participation in the socio-economic life of the country. The solution of this
problem requires a comprehensive approach and involvement of specialists of various structures
and organizations of regional organizations in this process.
The need to improve financial literacy of the population was clearly manifested in the
causes of the global financial and economic crisis that occurred in 2008 and its negative
consequences. In particular, in most developed countries, the growth of external debt, excessive
risk taking and deficiencies in risk management had a negative impact on the objective formation
of the price of financial assets and real assets in the financial sector[3]. They manifested
themselves in the following:
●
in a number of developed countries, the development of financial innovation at a
steady pace, the increase in the volume of financial products, and the increase in consumer debt
through domestic and external sources of financing on favorable terms;
●
the underdevelopment of the financial sector in developing countries has led to the
channeling of excess savings to finance the deficits of developed economies;
●
asymmetry in the international monetary system: after the collapse of the Bretton
Woods system, most developing countries use a controlled floating exchange rate regime, while
developed countries have introduced a free floating exchange rate regime.
Based on the above, improving financial literacy of the population in the context of
sustainable development of financial and economic relations becomes an urgent global problem.
Although the content of theoretical views on the concept of financial literacy varies, their
single idea is that the main condition for financial independence and well-being of a person is
related to his/her financial literacy. The theoretical foundations of financial literacy are important
for the perfect development of various strategies, concepts, programs and measures developed by
the states to improve financial literacy of the population and their effective implementation.
Financial relations affect all spheres of life of a modern person. Financial literacy allows
people to manage their financial well-being. Lack of basic financial knowledge and skills limits
people's ability to make the right decisions regarding their financial well-being.
At the macroeconomic level, lower levels of financial literacy constrain the development
of financial markets. In particular, it undermines trust in financial institutions and government
policies to regulate them, putting additional pressure on budgets at all levels and slowing down
economic growth. Lack of knowledge and trust of citizens in financial markets, lack of
understanding of contractual relations and basic principles of financing hamper the development
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International scientific journal
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of entrepreneurship and small business: people do not know how to start a business, organize a
business project.
Documents of the Organization for Economic Cooperation and Development (IHRT)
officially define financial literacy as follows: «Financial literacy is the awareness, knowledge,
skills, values (life orientations) that enable an individual to make informed financial decisions to
achieve personal financial well-being» -being. «and a set of elements such as behavior». [2]
In our opinion, in order to correctly and accurately analyze the level of financial literacy of
the population, we believe it is advisable to conduct the study based on its scale. Based on the
results of the analysis, it is advisable to group the level of financial literacy by individuals,
households, regions, enterprises, a certain sector of the economy and the country as a whole (see
Figure 1).
Authors
Description
Analyzing its characteristics
Weber M. [4]
"Human economic behavior is a
cultural way of controlling the
resources owned by the subject and
exercises control over resources
subjectively and objectively in
terms of the economic utility of
resources"
Financial literacy of the
population is an integral part
of an individual's financial
behavior and is mutually
proportional
to
economic
literacy.
Drucker P. [5]
"A person's level of economic and
financial literacy determines his or
her attitudes toward money and
goods
and
services
in
the
marketplace."
Financial literacy is a concept
related to economic literacy,
which
is
shaped
and
developed by a person over
the course of a lifetime.
Kiyosaki R. [6]
"Financial literacy is the result of
economic and financial knowledge
that is initially explained by earning
money,
saving,
consciously
channeling savings into high-impact
investments, increasing income and
improving one's life."
An
individual's
financial
literacy is related to earning,
saving and making effective
investment
decisions
to
improve it.
L.N. [7]
«Financial literacy means more than
just information or opportunities.
Financial
literacy
education
activities should be multifaceted and
should be defined as part of the
education of children and adults
who learn only in the formal
education system»
Financial literacy is a person's
level of financial competence
in performing real financial
transactions in the financial
market.
Stakhovich L.V. [8]
«Financial literacy is a person's
financial and economic knowledge
acquired in school, college, and
The
basics
of
financial
literacy of a person are formed
on the basis of knowledge
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2181-3906
2024
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«MODERN SCIENCE АND RESEARCH»
VOLUME 3 / ISSUE 3 / UIF:8.2 / MODERNSCIENCE.UZ
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higher
education
and
skills
developed in his or her life»
acquired
in
educational
institutions, qualifications and
skills acquired in life.
Vakhabov A.V. [9]
Financial literacy manifests itself as
the sum of knowledge and skills
required for a citizen to take an
active position in the market of
financial products and services, to
improve
the
well-being
of
themselves
and
their
family
members in society.
Financial
literacy
of
an
individual means effective
and active use of his/her
knowledge and skills in
serving the financial market.
Shadmanov E. [10]
Financial judgment is the skill and
behavior in evaluating decisions
about investing funds.
Describes the development of
financial thinking and positive
change
in
the
financial
position
and
structural
structure of the population in
providing economic well-
being.
Conclusions and suggestions
At the end of our article on the theoretical foundations for improving financial literacy of
the population, the following conclusions were drawn:
First, financial literacy means having positive financial behavior, basic economic and
financial knowledge, skills and competencies, as well as having experience in financial resource
management, short- and long-term planning and effective management.
Secondly, financial relations affect all spheres of modern man's life. Financial literacy
allows people to manage their financial well-being. Lack of basic financial knowledge and skills
limits people's ability to make informed decisions to ensure their financial well-being.
Thirdly, it is appropriate to categorize into groups on the scale of financial literacy,
individual, household, business relations, by specific economy and in general for the country. By
realizing this type of grouping, it becomes possible to accurately assess the impact of improving
the literacy level of the population on the economy of the country.
Taking into account the urgency of improving financial literacy of the population of
Uzbekistan, it is advisable to realize the following in our country:
- inclusion of financial literacy in the curricula of schoolchildren, academic lyceums and
vocational colleges, and higher education institutions;
-electronic textbook, video lesson to improve the level of financial literacy of
schoolchildren, academic lyceums and vocational colleges, students and students of higher
educational institutions, including the formation of young people's knowledge, skills and
qualifications on the basics of basic financial literacy, the creation of a mobile application;
-improvement of knowledge, skills and qualification of the population and entrepreneurs
in the field of Islamic finance, including the preparation and publication of popular scientific
articles and books, gradual development of banking products and services based on Islamic
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principles in commercial banks, special broadcasting on this topic in the media and organization
of short publications;
- assessment of the level of financial literacy of the working-age population, taking into
account their professional orientation, and implementation of measures aimed at its improvement;
- presenting to the population regular programs, TV and radio quizzes aimed at improving
financial literacy of the population through mass media;
- development of financial literacy programs for business entities;
- organization of «centers for improving financial literacy of clients» at financial
institutions, including commercial banks;
- formation of knowledge and skills of the population about financial products, services,
financial market, its structural components;
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