INVESTMENTS AS A COMPONENT OF PERSONAL FINANCE MANAGEMENT

Abstract

The article examines investments as a component of personal finance management, which allows you to increase your own income more effectively than savings. The study shows that Ukrainian households invest their temporarily free funds mainly in bank deposits, real estate and foreign currency, but in general, investment processes in Ukraine are developing rather slowly compared to Western countries. The population of Ukraine chooses bank deposits to save money because they do not require large investments and are the least risky compared to other investment instruments. It was found that the main problem of investing is the distrust of Ukrainian citizens and the preference for savings as a more reliable way to save their own money. Demand deposits are most in demand, although the interest rates are the lowest. But the population of Ukraine chooses to invest in this deposit because the money is in free use. It was also noted that investments account for less than 10% of total household income, with the largest share of wages, pensions, scholarships, and social benefits. This indicates a lack of awareness of the benefits of investing and their lack of involvement in the investment sector. The most popular types of investment in the world are stock and currency markets. The following are the main reasons for the small share of investment in the overall structure of household budgets: reduced investment activity of households due to economic instability, inaccuracy of information about investment companies, lack of guarantees and imperfect investment insurance system, low or unstable incomes, high inflation and inflation expectations. inefficiency of the household savings system. Based on the obtained results, ways to increase the incentives for the transformation of household savings into investments by creating the necessary conditions and infrastructure for the effective functioning of financial markets, development of investment products that have high profitability and reliability and meet different needs, increase the role and importance of savings in society, social status of citizens with investment savings and legal protection of investment of citizens.