THE ROLE OF FINANCIAL LITERACY IN ENHANCING ECONOMIC STABILITY

Financial literacy has emerged as a crucial determinant of economic stability and sustainable growth. It encompasses the knowledge and skills that enable individuals to manage resources effectively, reduce risks, and make informed financial decisions. The article highlights the broader economic impact of financial literacy, emphasizing its role in fostering savings culture, promoting responsible consumption, and stimulating investment activity. By analyzing key elements of financial literacy and its influence on household behavior, the study demonstrates how financially literate citizens contribute to macroeconomic resilience and long-term development.