FINANCIAL LITERACY AND FINANCIAL EDUCATION - A CONDITION FOR ACHIEVING INDIVIDUAL AND SOCIAL WELL-BEING

Abstract

The focus and purpose of the present study is the analysis of the status, relevance and results of research on the problem of forming investments in human capital through financial education in schools. The analysis considers financial education in schools as a condition for achieving individual well-being and in parallel as a factor determining the sustainable development of the economy. The analytical conclusions and recommendations for future interventions and possible policies in Bulgaria and in the Bulgarian educational system are based on this basis. Somewhat presupposed by the topic, mainly methods such as operation such as analysis, synthesis, comparison, abstraction, concretization are used. In recent years, international achievements and activities in the field of financial literacy and financial education in schools have been growing rapidly. Both developed and developing countries seek to increase the level of financial literacy of their citizens, and young people in particular. There are several reasons for this aspiration. Initially, they were related to concerns about the impact of shrinking public and private social benefits, demographic change, and increasing complexity and diversity of financial products. New skills for money management are needed in conditions of higher unpredictability, increased personal responsibility for one's own well-being in a more complex unstable financial environment and increasing pressure for consumption. Thus, a significant proportion of young people of school age are forced to make independent financial decisions as consumers of financial services. The topic of financial literacy is especially relevant today, when people face serious challenges in terms of their financial well-being. In order to support both adults and young people in the financial decision-making process, they need to be prepared. They need to know and understand financial concepts and risks well. Therefore, financial literacy worldwide is beginning to be considered a key life skill. Financial education is also a condition for the financial protection of consumers, as it is an instrument of financial stability. It is also a factor in improving the individual well-being of people. Acquiring more knowledge and skills related to financial literacy will become increasingly necessary and important for the future. Therefore, financial education will play an increasingly important role, providing people with the skills needed to understand increasingly complex products and services, choose the most appropriate ones and prevent financial fraud. The results of the study are a guide for financial literacy programs taught in schools, which should contribute to the future life of young people. Such programs can give the desired "practical and life" orientation of the learning process. The recommendations are that the state institutions, the Ministry of Education in Bulgaria and all stakeholders should work in an integrated manner. The Ministry should also have a plan for the introduction of financial education as early as possible, for quality teacher training and providing quality training resources for all levels of school education in Bulgaria - from preschool to high school, including the development of resources for student training. Today, appropriate education to increase the financial competencies of people, especially the younger generation, are urgently needed and they are accepted as an investment in human capital formation in competitive economies. This in turn leads to the improvement and management of the business environment as a whole and is a challenge for Bulgaria and for the countries from the whole region.