HOUSEHOLD FINANCES IN THE STRUCTURE OF INVESTMENT RESOURCES OF THE COUNTRY

Abstract

Investment resources, of course, play a crucial role in ensuring the sustainable development of domestic enterprises. The inherent ability of investment to revitalize production processes and form the basis for sustainable development leads to interest in them from both scientists and practitioners. Moreover, when studying the sources of origin of investment resources, the greatest attention is paid to institutional investors, mechanisms and instruments for placing temporarily free financial resources available to them. However, some assets are excluded from financial turnover in the form of household savings, which can serve as an alternative source of investment resources for the country’s economy. Household finance is an important source of financial resources, given the possibility of attracting them to invest in the real sector of the economy, in particular industry. The structure of the country’s economy indicates the predominant role of industry in creating domestic gross product, while industrial enterprises have a significant lack of financial resources to ensure the stable and sustainable development of their economic activities, and financial security. This encourages industries to seek alternative sources of financing. In turn, savings, which are part of household finance, and do not find application in the financial market as credit capital, can well be used as investment resources of industrial enterprises. Household finances are a significant part of the country’s financial resources, participating in the country’s numerous financial flows. Today, most research on household financial resources is limited to assessing and forecasting their level and dynamics, structure, and so on. However, household finances can be used as an internal source of investment resources for domestic enterprises both through the banking system and by attracting funds directly from the population through financial instruments. Unfortunately, in Ukraine the investment potential of the household is not fully used. Households actively use informal foreign exchange savings to finance their needs, and could direct to the development of certain areas of the economic system. According to experts, today the most attractive forms of investment for the population are real estate, financial companies, and the purchase of precious metals and shares of large corporations. At the same time, further research is needed on the forms, methods and mechanisms of intensification of investment activity of domestic households in the conditions of economic and political uncertainty.