Usachev V.A.,Zikunova N.E

Donetsk Natioinal University of Economiks and Trade named after Tugan-Baranovsky

HOUSEHOLD FINANCE: Structure and Management

The crisis phenomena occurring recently in the global economy have forced economists significantly change views on the content and structure of the main economic categories . Including this affected scientific knowledge about finance in general and finances of households in particular .In connection with the transition of our country to a market model of managing the impact of processes of global economic integration , restructuring the relationship between the basic elements of the financial system fundamentally changed the conditions of life of Russian households that were able to determine the direction of their financial behavior. In the modern financial science is increasingly apparent impact of households on the economic processes taking place .Despite the increasing number of publications on the subject Housekeeping , some issues of life of the household remain poorly understood , including: principles of managing personal finances and the formation mechanism of the relationship between family members; features to attract individuals as individual and institutional investors in the real sector of the economy; determination of the status and position of households in the globalized economy ;organization of financial literacy .In the USSR, the household has not been a subject of economic relations , its role has largely concentrated on the consumption function , and in consideration of the existing system of economic relations into account the social and collective interests , which does not review the individualization of property. There were virtually no problems with the adoption of the financial decisions of their choice and risk , as it was previously defined as the population did not have the experience and capabilities disposition of their property and their money. The mechanism of the existence and management of household finances almost never been studied , no studies the conceptual foundations of their interaction with other economic entities .In terms of planning and command economy the household is considered as a separate economic category , the unit of economic analysis often had a family. In economically developed countries , households are one of the main subjects of economic relations and an integral part of the financial system , which is taken into account in all the processes of macro .Existing studies performed in the theory of financial science , economic relations , financial management, based on different concepts : theory of dialectical contradictions in relation to the scope of the financial and economic relationships that develop between family members , members of the household ;the interaction of various economic factors affecting the organization and structure of the family budget ;principles, methods and forms of finance at all levels of the economy ;collective model of financial management in the household and the development of a mechanism of transformation of people's savings in the investment resources of the real sector of the economy. The modern theory of financial science examines household finances as one of the key elements of the financial system , describing the shape of the existing relationship between the people and the state. Addressing the subject of economic relations along with the public ( centralized ) finance and finance businesses , household finances primarily intended to meet the personal needs of the population. Finance businesses ensure formation of a profitable part of household budgets in the form of wages, social benefits at the expense of profits, payment of income in the form of dividends or interest on the issued securities business entities , etc. Public (centralized ) finances in the face of the state through tax policy , transfer payments ( grants, scholarships, pensions ) , payroll , etc. also contribute their share in the formation of the household budget .Referring to the importance of this or that element of the financial system in the formation of economic relations , it is necessary to draw attention to the growing influence of the private sector to take place in the country of macro-and micro-economic processes .Some authors emphasize that the concept of "finance companies " and " family finances " have the right to exist from the point of view of the management hierarchy , but in their determination not to put such an understanding of finance, in which the control object is the state. At present, the domestic financial science is no single concept of formation and development of household finances , as well as the system of regulation in place in the Russian economy, socio -economic processes that meets the practical needs of modern society . The study of the economic substance of Finance is of great interest , if only because not so long ago they were one-sided coverage in the national scientific and educational literature : describe in detail the finances of centralized economy, and finance businesses , households , their organizations , and especially management has been neglected . In addition, there are individual differences in the approaches to the understanding of how the role of the household, and to determine its status. In economic theory, and in particular, in the neoclassical paradigm is that the household as a consumer is a group of individuals who have reached certain agreements among themselves to provide their own consumption , or a person who is self-sufficient intake . The behavior of households in the market of consumer goods and services is determined by a complex socio -economic, cultural, social, personal and psychological factors. In the domestic science as a household farming families often understood as an independent unit , whose revenues are used for the sustenance of its members, mainly to the needs of non- business organization . In accordance with the recommendations in the UN statistics the concept of household is based on the level of everyday life , in which individuals or groups of individuals supporting themselves waste products . A household is considered primarily as a consumer cell , and the elements of production activities are taken into account only to the extent that they are necessary to meet their own needs. In reality, the concept of household is used quite extensively in the specification as a separate , stand-alone cost of the individual and the household, in which may include several families.