FINANCIAL LITERACY AND CONDITIONS FOR ITS IMPROVEMENT Novo Plakalović University of East Sarajevo, Bosnia and Herzegovina Boško Mekinjić University of Banja Luka, Bosnia and Herzegovina Flora Merko, Daniela Lika Faculty of Business, “Aleksander Moisiu” University, Durres, Albania https://doi.org/10.7251/ZREFB1913001P

Published 07/05/2019 Volume 13, Issue 1, 2019

ABSTRACT

In this paper we explain the notion of financial literacy and its importance for citizens, financial institutions and society as a whole. Low level of financial literacy and insufficiently organized institutional framework can create many problems for individuals and financial institutions as a whole. In Bosnia and Herzegovina, a very small number of people are financially literate. There is no strategy for raising the level of financial literacy. Bosnia and Herzegovina is a country that, in relation to its surroundings, at least strives to raise the level of financial awareness and literacy of citizens. If it is not possible to adopt a national strategy for raising the level of financial literacy in B&H, it would be necessary to use the existing institutional capacity to increase the level of literacy of all structures and groups of the population.

Keywords: financial literacy, financial awareness, policies for improving financial literacy, financial education.

 

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