Management of citizens savings accounting the financial literacy factor under digitalization

Abstract

The favorable development of the country’s economy depends on the correct distribution of its resources, meanwhile, the higher the return on capital ratio, taking into account all existing risks, the more promising economic development in the long term. Financial literacy of Russian citizens is an important aspect of the financial market and the financial system as a whole, which affects the distribution of resources in the country. The purpose of the study is to establish the relationship between financial literacy and savings in the conditions of digitalization.The main resource possessed by the population are their savings. In a market economy, there is a wide variety of savings and investment opportunities, while it is quite difficult for an individual who does not have a sufficient level of knowledge in the field of finance to make the right decision about the storage and distribution of his temporarily free cash. This can lead to excessive accounts payable, fraud, dependence on the crisis in the country, and as a result – to the loss of part of the accumulated funds. Recently, one can notice a growth trend in cash incomes and savings of the population, as well as an expanding market for financial products and services, which increases personal responsibility for financial decisions made by an individual.In this regard, the problem of increasing financial literacy is facing the state quite acutely, because economic growth, investment attractiveness, development of the financial market, stability of the financial system and increasing the competitiveness of the Russian economy depend on it.

Keywords

• financial literacy
• savings
• income
• expenses
• population life cycle
• saving behavior
• digitalization
• financial market
• financial products and services
• financial solutions
• households
• family budget