Systematization of Household Financial Behavior Based on Hierarchical-Faceted Synthesis

Abstract

The article is devoted to the systematization of household financial behavior. Its novelty lies in the construction of a structured framework based on interdisciplinary and systemic approaches, combining faceted and hierarchical classification methods. The household financial behaviour system is presented as a hierarchy of models, strategies, focuses, types, patterns, and triggers, each of which can be considered an independently classified facet. The financial behavior model (consumer, charitable, entrepreneurial, savings-oriented, investment, credit and borrowing, and insurance) occupies the top level of the hierarchy as the dominant framework guiding household actions and cash flow management. It is shaped by principles, values, interests, attitudes, and perceptions of desired outcomes and means to achieve them, which determine financial decision-making and the formation of behavior strategies. The proposed hierarchy illustrates how individual elements of financial behaviour can be further classified, enabling the identification of strategy groups, including financial planning and future provision; current financial management; development of financial potential; financial risk and liability management; capital accumulation and growth; and alternative and special strategies. Implementing these strategies requires households to define a behavioural focus that may be rational, irrational, reactive, or deviant. Particular attention is given to household financial behaviour patterns, defined as recurring, observable sets of actions, decisions, and habits that manifest over time. For the first time, the concept of a financial behaviour trigger is introduced as a stimulus (an event, condition, or phenomenon) that initiates a behavioural pattern, and is classified into physiological, psycho-emotional, cognitive, and informational categories. Overall, the household financial behavior system is defined as a holistic, hierarchically structured framework integrating models, strategies, focuses, types, patterns, and triggers, interconnected through household members’ value orientations, interests, and perceptions, and aimed at managing cash flows, assets, and financial risks to achieve socio-economic objectives.