Abstract
The instruments for financial security management of households have been proposed, which are divided into three directions: financial planning (financial plans, financial goals, and financial forecasts), financial saving (reducing unproductive costs), and financial investing (financial products, investment funds, real estate investments). A range of banking products are proposed to increase household activity in saving and investing. Practical recommendations for households during the process of real estate are given. The characteristics and advantages of creating a financial “security buffer” for a household are described. The importance of financial consulting and financial coaching for personal financial security management is presented.
Keywords: financial security, financial instruments, household savings, household investments, financial Planning
Introduction
Today the person-centred paradigm of globalisation processes is gaining in popularity, which represents a model focused on maximising the disclosure of each person's potential and society as a whole, creating decent conditions for the realisation of all intellectual, cultural, and creative possibilities of a person. A significant contribution to the study of the issues of financial security has been made by such Ukrainian and foreign scholars as: O. I. Baranovsky, M. Yu. Vorobyov, V. V. Voroshilo, O. O. Dragan, R. G. Snishchenko, L. Tvardovska, K. E. Dynen, A. Atkinson, J. Y. Campbell, A. Finney, D. Hayes. At the same time, it should be noted that despite in-depth investigation of the topic of financial security, mainly the strategy for managing the financial security of the state or enterprise is emphasised, whereby much less attention is paid to performing financial security management of households.
The policy of encouraging financial security management of households should take a prominent place in the state strategies of all countries, since under the current conditions the world economic system is characterised by a propensity for fundamental changes, which affects the well-being of households. However, it is impossible to create a reliable basis for people's living standards without their own participation. Therefore, the aim of the research is to define and develop a series of instruments for financial security management of households.
Working on issues such as personal financial security, investments and retirement savings will help to properly manage the personal capital of a household.