PERSONAL FINANCIAL PLANNING: CURRENT STATE AND METHODS OF BUDGET FORMATION

The scientific article presents an overview of domestic and foreign literature on the problems of increasing the financial literacy of the country's population, the role of the family in instilling skills of rational financial management of family members, increasing the efficiency of personal finance management, developing a set of measures to protect personal finances from the standpoint of personal financial hygiene and justifying the choice of investment options, as well as institutionalizing the financial literacy of the adult population of the country. The abilities (skills) of a citizen are identified, allowing him to form a set of knowledge about financial resources. The image of a financially literate citizen is formed, the characteristic features that distinguish him from other citizens are indicated. The concept of a personal budget is given and its components are disclosed. It is indicated that a personal financial budget is a personal plan of expected income and expenses (current, unforeseen, for the purpose of accumulation to achieve a personal financial goal) for a future period (month, quarter, year). It is stated that planning personal income and expenses allows to exclude non-payments, and accounting of received income and expenses made will teach to think about the expediency of some purchases. It is noted that in domestic practice there are two methods of drawing up a personal budget: the "60% solution" method and the four envelopes method. The "60% solution" method is implemented by an algorithm that includes five stages. Unlike the "60% solution" method, with the four envelopes method, the formation of the budget should begin with laying out envelopes. All other expenses depend on income, which can be increased by replacing leisure time with work time.