The financial stability of households: a methodology for assessing

Abstract

The financial stability includes many aspects of households’ financial activities, such as assessing their financial resources, financial security indicators, realizing investment potential, making savings, etc. And also is subject to endogenous and exogenous factors. As result, there is no single methodology for assessing financial stability in domestic science and practice. This is due to the multidimensional nature of the analysis of households’ financial activities.

The methodology for assessing the financial stability of households should take into account the following rules:

1. a) the possibility of its use to characterize the financial stability of households;
2. b) the formation of optimal values of relevant financial indicators;
3. c) the selection of relevant indicators for assessing all components of financial activity to ensure the accuracy of calculations and avoid imbalances in the process of managing financial resources;
4. d) focusing separately on the macro- and microeconomic level of research, due to the different factors of influence.