BEHAVIORAL ASPECTS OF PERSONAL FINANCE MANAGEMENT IN THE CONTEXT OF CONTEMPORARY BANKING DEVELOPMENT
Abstract
The article examines the behavioral aspects of personal finance management in the context of contemporary banking development. It is substantiated that individuals’ financial decisions are shaped not only by income levels and access to banking services but also by emotions, cognitive biases, financial literacy, prior experience, and the digital environment. The effects of present-oriented consumption, loss aversion, mental accounting, overconfidence, and herding behavior on saving, borrowing, and investment decisions are identified. The dual impact of digital banking on customers’ financial discipline is revealed. The study proposes measures aimed at fostering responsible financial behavior through budgeting, automated savings, greater transparency of banking products, and enhanced financial literacy.
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