Effective personal finance management as a way to prevent bankruptcy of individuals

Subject. This article discusses the issues of improving financial literacy among the population of Russia. Objectives. The article aims to develop organizational and methodological provisions and practical recommendations for managing personal finance and preventing bankruptcy. Methods. For the study, we used economic and mathematical methods of research. Results. The article identifies causes of the increase in the number of personal bankruptcies in Russia during 2016–2023. It develops and proposes a step-by-step algorithm for getting out of debt dependency, and describes the risks that may arise during its implementation. Relevance. The proposed algorithm can help consider individual financial circumstances and achieve financial well-being.