American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 18, July, 2023 36 | P a g e PROSPECTS FOR THE DEVELOPMENT OF THE STATE ECONOMY BY INCREASING THE FINANCIAL LITERACY OF THE POPULATION Jo’rayev Og’abek The Student of TSUE ogabekjorayev081@gmail.com Abstact: The article analyzes the international and Uzbekistan experience of introducing financial literacy of the population at the state level and with the involvement of banking organizations and educational institutions, describes the current state of the issue under study. The National Program for Improving the Level of Financial Literacy of the Population of the Uzbekistan is presented in the article as a document that will formulate the goals and objectives of the state policy aimed at increasing the level of financial literacy of the population of the Uzbekistan, which will contain the mechanisms for implementing such a policy, the principles for distributing the powers of all parties involved, as well as specific initiatives and measures to achieve the goals. The article also puts forward proposals to improve the financial literacy of the population for various categories of citizens: for teachers, partner organizations, the population - users of Internet resources, older people studying in various educational institutions in the form of classical types of education (in classrooms). The article proposes to create experimental sites - financial literacy clubs to improve the financial literacy of students in grades 5-9 of secondary schools in the Uzbekistan. Keywords: financial literacy; banks; lending; Financial services; financial products; financial mechanisms; personal finance; personal budget; socio-economic conditions. The process of improving the financial literacy of the population, which began in various countries in the form of separate initiatives of public and private organizations involved in assisting citizens in managing personal finances and informing about certain financial products and services, further developed to the level of national programs and strategies, as well as supranational initiatives of the EU, the World Bank, the OECD and other international organizations. The problem of the low level of financial literacy of the population is not exclusively Uzbekistan. According to sociological research, in such developed countries as the USA, Great Britain, Australia, etc. the level of financial literacy is also insufficient. In the above countries, the problem of increasing the financial literacy of the population is solved at the state level. In many countries, national strategies and programs for improving the financial American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 18, July, 2023 37 | P a g e literacy of the population have been adopted and are being implemented, and significant funds are allocated from the state budget to achieve these goals. Private and public organizations are actively involved in the implementation of financial education programs. Sections on financial literacy are included in compulsory and optional educational programs. In the Concept of long-term socio-economic development of the Uzbekistan for the period up to 2020, the improvement of financial literacy is named among the priority areas for the formation of an investment resource. The Strategy for the Development of the Financial Market of the Uzbekistan for the period up to 2020 and the Concept for the Creation of an International Financial Center in the Uzbekistan consider the issues of increasing the financial literacy of the population as an important factor in the development of the financial market in Uzbekistan, as well as the issues of increasing the stability of the financial system and increasing the overall competitiveness of the Uzbekistan economy. One of the defining trends that significantly affect the development of the Uzbekistan financial market is the reduction in the income of the population. The level of income is not high enough to form serious savings, and mainly everything is spent on current consumption (25% of respondents). The undisputed leader in terms of popularity is Sberbank of the Uzbekistan, 97% of the adult population of Uzbekistan are familiar with it. Second place belongs to Uzbekistan Standard Bank (37%). The top ten most popular banks also included Vneshtorgbank (34%), Alfa Bank (26%), Gazprombank (25%), Bank Moscow" (23%), "Uralsib" (23%), "Rosbank" (22%). In general, the population of Uzbekistan is more or less familiar with all the main types of banking services. The following banking services turned out to be the most famous: demand deposits (68%), acceptance of utility payments by banks (55%), currency exchange operations (46%), lending for urgent needs (45%), term deposits (42%) and transfer of salaries and pensions (41%). Loans for various purposes are less well known: for the purchase of real estate (39%), a car (39%), a mortgage (36%), for real estate construction (30%), and for the purchase of a land plot (26%). 38% and 29%, respectively, are familiar with such services and services as an ATM and a plastic card. Concept “credit card” is familiar to every third participant in the survey. 32% of Uzbekistans are familiar with the service of transferring funds to another city or country. 45% of the adult population are familiar with the deposit insurance system. At the same time, 58% of respondents who are aware of the deposit insurance system have only heard about its existence. Plastic cards account for approximately 6% of all types of banking services. 75% of respondents do not use plastic cards. However, among plastic card holders there is a low level of awareness about certain types of services. Since 2003, the Organization for Economic Cooperation and Development (OECD) has dealt with financial literacy issues. The activities of the OECD in the field of financial education received a positive assessment of the world community, in connection with which there was an expansion of the range of activities of the organization that improves financial literacy, and in 2008, the International Network for Financial Education (INFE) and the American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 18, July, 2023 38 | P a g e International Node for Financial Education were created. INFE currently has more members (more than 150 institutions from 75 countries) than the OECD itself. INFE/OECD has a broad program in financial education and awareness, including expanding data collection capacity, research and development of best practices. In accordance with the Principles of Best Practice in Financial Education, the OECD has recommended that governments develop national programs to improve financial literacy from an early age. The current trend is that children have to deal with money matters at a very early age. A study conducted by the Personal Finance Education Group (PFEG) found that almost 98% of adolescents aged 11-17 have not only their own financial assets, but also debts. In addition, the results of an online survey conducted by YouthNet showed that 66% of respondents (over 1,000 people aged 16 to 25) are concerned about paying off their debts. Understanding the importance of promoting financial education among young people, especially from school age, has led to an increase in the number of countries paying special attention to the financial education of the younger generation and increasing the amount of public funding for it. An analysis of programs and projects in the field of improving the financial literacy of the population in different countries showed that the best results are demonstrated by those training systems that are implemented on an innovative basis, create the necessary prerequisites for preparing the population for lifelong education and contribute not only to the acquisition of new knowledge, but also to the formation of skills for its effective use. To successfully integrate financial literacy and its elements into the existing educational system, the following conditions must be met: - Programs should be continuous, progressive, consistent and comprehensive, even despite the possible increase in the teaching load with the introduction of financial literacy as a new educational subject. - Teaching methods should be adapted to specific target groups and contribute to increasing the attractiveness of learning. - The widespread use of active pedagogical methods based on real life situations should help to increase the effectiveness of learning. - Training courses on financial literacy for teachers should be organized. To organize effective learning, it is desirable to have an established interaction between the educational system and the financial sector. The AFN (Financial Supervision Authority) has developed the following seven initiatives that aim to expand the financial opportunities of the UK population: 1. Working with Schools - "Training for Money" - Personal Finance Education Group (PFEG) consultants work with teachers to help educate youth about personal finance management. 2. Youth-focused initiatives - "Helping the young understand the meaning of money" - assisting organizations working with youth to promote programs for managing personal finances. 3. Programs in the workplace - "The effective use of your money" - an information platform covering the main issues of personal finance. American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 18, July, 2023 39 | P a g e 4. Families/young parents – “Kopilka” – a project designed to help future parents manage their personal finances at an important stage in their lives. 5. Online tools - The FMSA provides a wide range of objective interactive tools, such as pension, loan and mortgage calculators, debt tests, purchasing medical policies. 6. Moneymadeclear.org.uk is a consumer website launched by the FSA in 2006. The key to successful implementation of financial literacy programs is the following conditions: - Conducting research that determines and analyzes the levels of financial literacy and skills among young people, identifying gaps in the knowledge and needs of young people, as well as informing the public about the results of the research; - Development of international indicators and tests for assessing the level of financial literacy (including the PISA financial literacy assessment from the OECD) for the subsequent development and implementation of educational standards in the field of financial education. - Creation of effective methods of teacher training, formation of a culture of teaching in the field of personal finance, provision of material support for the development of financial education at the national and local levels; - Formation of a professional resource center and training models for different target groups to help teachers. An example is the New Zealand Ministry of Education, which maintains a web resource for teachers, which is part of the information and educational platform for the implementation of the New Zealand Financial Education Development Strategy, which was adopted in June 2008; - Establishing partnerships and coordination with all stakeholders of projects aimed at improving the financial literacy of the population. Vividly- A prime example is the experience of the United States, where the well-established interaction of twenty departments forms the basis of the American financial education system. - Creation of favorable conditions for learning, including: accessibility and a fascinating form of presentation of materials, adaptation to age-specific perceptions, motivation, continuity, mass methods, funding (including co-financing) of educational programs, quizzes, competitions and other initiatives. For example, in Poland there is a national quiz in which groups of students imitate real transactions on the stock exchange. And the Consumer Finance Agency of Canada organizes interactive quizzes as part of the consumer education and financial literacy program; - Financial literacy programs for children should be based on modern and understandable examples from real practice, be colorful, engaging and comprehensible in order to have a positive and lasting impact on learners. In the US, financial literacy is promoted by a special committee on career start and retirement planning, providing educational services in the workplace. 43% of American companies have joined this program, as they help increase productivity by reducing the time American Journal of Interdisciplinary Research and Development ISSN Online: 2771-8948 Website: www.ajird.journalspark.org Volume 18, July, 2023 40 | P a g e to resolve personal financial issues. A similar approach is being implemented in Japan, Singapore, and Spain. An analysis of individual programs showed that all of them are formed according to a single algorithm that determines the procedure for developing "road maps" for their implementation and includes the name of the program and the initiating country, the date the program was created, the sponsor (responsible organization, target audience coverage, program tools, description (goals and needs (tasks, method of assessing financial literacy, assessment of the result of implementation (if it has already been obtained). All programs have an official website on the Internet and are guided by the use of active learning technologies. The presentation format of programs complies with the recommendations of the OECD on best financial practices. It should be noted that in the above programs and initiatives in the field of financial literacy for young people, the knowledge gained is directly related to their practical application, the provision of ongoing assistance and counseling; knowledge builds understanding and skills in using financial information now and in the long term, it is focused on the life cycle and strategy of participants, and helps to educate the responsibility for making financial decisions, taking into account personal safety and well-being. References: 1.MY Tirkashev, «THE ROLE OF SMALL SCALE BUSINESS IN THE DEVELOPMENT OF MARKET ECONOMY», МОЯ ПРОФЕССИОНАЛЬНАЯ КАРЬЕРА Учредители: Общество с ограниченной ответственностью" Моя профессиональная карьера", 34, 2022, 97-102 с.; 2.M Yu Tirkashev, NB Eshtemirov, «FACTORS OF EFFECTIVE USE OF MECHANISMS TO IMPROVE FINANCIAL CONTROL», 2022, Вестник магистратуры, 3-2 (126), 111-112 с.; 3.Djurakulovich Ziyadullaev Makhmudjon. (2022). 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