Financial planning and saving capabilities of Individuals

Abstract

The article discusses principles of personal finance management. After examination of theoretical aspects of main features of individuals’ financial behavior and changes during life cycle, financial behavior in recent years of Lithuanian individuals is analyzed. The authors continue to investigate and verify householders’ financial behavior with assumptions made summarizing sentiments of researchers and financial intermediates’. The goal of this investigation is to ascertain financial saving possibilities of residents and determine the factors of making financial decisions in the economic downturn. The presented survey conclude that Lithuanian citizens are not active in using financial instruments for long term goals (retirement), but save money for unforeseen situations while their income are sufficient.