Peculiarities of the modeling of decision-making processes in the field of personal finance
In the conditions of constant technological and economic dynamics of the modern world, managing personal finances becomes an extremely important component of financial stability and well-being for individual consumers. People are exposed to the variety of financial instruments and investment opportu...
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| Format: | Article |
| Language: | English |
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Zhytomyr Polytechnic State University
2024-06-01
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| Series: | Технічна інженерія |
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| Online Access: | http://ten.ztu.edu.ua/article/view/308111 |
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| author | V.V. Didkivskyi D.S. Antoniuk |
| author_facet | V.V. Didkivskyi D.S. Antoniuk |
| author_sort | V.V. Didkivskyi |
| collection | DOAJ |
| description | In the conditions of constant technological and economic dynamics of the modern world, managing personal finances becomes an extremely important component of financial stability and well-being for individual consumers. People are exposed to the variety of financial instruments and investment opportunities, which require effective financial management to achieve the financial goals. The article explores the peculiarities of the modeling of decision-making processes in the field of personal finance, focusing on individual characteristics of risk perception. In particular, the article uses prospect theory to analyze decision-making processes in personal finance. This approach allows us to investigate how individual risk perception influences the choice of financial instruments and investment strategies. The results of the analysis demonstrate that attitudes towards risk can determine the choice between risky and stable investments. Noted the possibility of using the approach in the development of algorithmic base and software for modeling decision-making processes in personal finance, that opening up prospects for further development of educational tools aimed at increasing financial literacy. |
| format | Article |
| id | doaj-art-71142a8a82074808ba826fb68b7a85da |
| institution | Kabale University |
| issn | 2706-5847 2707-9619 |
| language | English |
| publishDate | 2024-06-01 |
| publisher | Zhytomyr Polytechnic State University |
| record_format | Article |
| series | Технічна інженерія |
| spelling | doaj-art-71142a8a82074808ba826fb68b7a85da2024-11-08T13:36:17ZengZhytomyr Polytechnic State UniversityТехнічна інженерія2706-58472707-96192024-06-0119328328810.26642/ten-2024-1(93)-283-288Peculiarities of the modeling of decision-making processes in the field of personal financeV.V. Didkivskyi0https://orcid.org/0000-0002-4615-7578D.S. Antoniuk1https://orcid.org/0000-0001-7496-3553Zhytomyr Polytechnic State UniversityZhytomyr Polytechnic State UniversityIn the conditions of constant technological and economic dynamics of the modern world, managing personal finances becomes an extremely important component of financial stability and well-being for individual consumers. People are exposed to the variety of financial instruments and investment opportunities, which require effective financial management to achieve the financial goals. The article explores the peculiarities of the modeling of decision-making processes in the field of personal finance, focusing on individual characteristics of risk perception. In particular, the article uses prospect theory to analyze decision-making processes in personal finance. This approach allows us to investigate how individual risk perception influences the choice of financial instruments and investment strategies. The results of the analysis demonstrate that attitudes towards risk can determine the choice between risky and stable investments. Noted the possibility of using the approach in the development of algorithmic base and software for modeling decision-making processes in personal finance, that opening up prospects for further development of educational tools aimed at increasing financial literacy.http://ten.ztu.edu.ua/article/view/308111prospect theorydecision-makingpersonal finance |
| spellingShingle | V.V. Didkivskyi D.S. Antoniuk Peculiarities of the modeling of decision-making processes in the field of personal finance Технічна інженерія prospect theory decision-making personal finance |
| title | Peculiarities of the modeling of decision-making processes in the field of personal finance |
| title_full | Peculiarities of the modeling of decision-making processes in the field of personal finance |
| title_fullStr | Peculiarities of the modeling of decision-making processes in the field of personal finance |
| title_full_unstemmed | Peculiarities of the modeling of decision-making processes in the field of personal finance |
| title_short | Peculiarities of the modeling of decision-making processes in the field of personal finance |
| title_sort | peculiarities of the modeling of decision making processes in the field of personal finance |
| topic | prospect theory decision-making personal finance |
| url | http://ten.ztu.edu.ua/article/view/308111 |
| work_keys_str_mv | AT vvdidkivskyi peculiaritiesofthemodelingofdecisionmakingprocessesinthefieldofpersonalfinance AT dsantoniuk peculiaritiesofthemodelingofdecisionmakingprocessesinthefieldofpersonalfinance |