Financial literacy and financial culture: A new conceptual approach to defining and understanding

Subject. This article discusses a conceptual approach to understanding, defining the essence and relationship of two economic categories, namely financial literacy and financial culture. Objectives. The article aims to develop a new conceptual approach to the definitions of financial literacy and financial culture, which have the potential to become generally accepted. Methods. For the study, we used the methods of analysis and a systems socio-cultural approach. Results. Based on the study, the article presents a fundamentally new author-developed conceptual approach to defining financial culture and financial literacy, and it also offers the author-developed definitions of these concepts. Conclusions and Relevance. The article concludes that the proposed clarification of the concepts of Financial Literacy and Financial Culture, as well as the identification of the relationship between them, will enhance the effectiveness of the activities implemented by State and financial institutions related to financial literacy and financial culture, including through the transition in goal-setting from the paradigm of financial culture to the paradigm of financial literacy. The results of the study can be used by State and financial institutions when developing a list of measures related to the implementation of the Strategy for Improving Financial Literacy and Forming a Financial Culture until 2030.