EXPLORING THE ESSENCE AND DIRECTIONS FOR IMPROVING FINANCIAL LITERACY AMONG PARTICIPANTS IN FINANCIAL RELATIONS AS AN INDICATOR OF STATE ECONOMIC STABILITY

Since ancient times, people have been searching for the optimal financial concept. In our view, the most optimal concept for the development of financial instruments is financial literacy, which shapes financial relationships and informs financial behavior. Financial literacy is critically important both for individual decision-making and corporate processes. With this skill, individuals can manage their income efficiently and reduce the risk of economic difficulties.The purpose of this article is to clarify and systematize the conceptual aspects of financial literacy and to identify and justify key financial skills.The article concludes that financial literacy significantly influences such practices as budgeting, balancing income and expenses, planning expenditures, repaying debts regularly, financing essential needs, creating retirement and future financial plans, and setting and achieving financial goals.