Basic Components of the Modern Model of Financial Security of Private Households

Abstract

In modern conditions, private households are faced with the urgent task of ensuring financial security. Protection from threats that can negatively affect their financial situation determining the inability to meet the basic needs of household members at the expense of their own income and resources cannot be achieved simultaneously and not without external participation. In this regard, the modern model of ensuring the financial security of private households is a complex, multicomponent structure. It takes into account the identified limitations when using its individual elements. The paper shows the prevalence of external participation in ensuring the financial security of households based on the state-legal mechanism of implementation. The problem of households' dependence on the social security system is posed in the event of a need to level the negative consequences of realized risks, which predetermines a significant burden on budgets of all levels and actualizes the task of increasing private households' own participation in risk mitigation, including through their transfer to insurance organizations.