The role of financial literacy in ensuring financial inclusion of the population

Abstract

This work summarizes the arguments and counterarguments in the framework of the scientific debate on the issue of financial literacy. The main purpose of the research is to identify the key factors and behavioral patterns inherent in managing personal finances. Systematization of literary sources and approaches to solving the problem of insufficient level of financial literacy among different segments of the population indicates that it is necessary to promote financial education of the population, especially vulnerable segments. This concerns the issues of financial inclusion, improvement of financial education, and development of practical skills for making financial decisions. The urgency of solving this scientific problem is caused by the rapid development of financial services. The study of the problems of the theoretical foundations of financial literacy in the work is carried out in the following logical sequence: analysis of the publications, analysis of available databases, and statistical analysis. The methodological tools of the research were the Python programming language, in particular the stats model’s library. The object of the research is patterns of behavior with personal finances. The article presents the results of empirical statistical analysis, which showed that the difference in financial decisions of individuals is due to age, level of education, employment, and level of family income. Financial decisions such as saving or borrowing have been found to be related to financial literacy and influence financial confidence. The study empirically confirms and theoretically proves that financial literacy is a fundamental factor in the level of financial well-being and closely correlates with financial behavior patterns. The results of the research can be useful for further scientific developments.