Nеighbоrhооd Systеm Есоnоmiс in Thе Асtivity Finаnсiаl Litеrасy Plасе and to Dеvеlоp Impасt

Abstract

This article investigates the role and significance of financial literacy within neighborhood (mahalla) systems, focusing on its impact on economic activity and overall community well-being. Despite the global emphasis on enhancing financial literacy to bolster economic resilience, there remains a notable gap in tailored educational approaches and practical tools for local communities in Uzbekistan. Utilizing analytical methods, this study examines existing literature, evaluates foreign experiences, and explores practical methodologies relevant to mahalla-level implementation. Findings indicate that increased financial literacy significantly enhances personal financial management, particularly in the context of credit usage, loan repayment methods, and effective income distribution strategies. Consequently, financially literate populations demonstrate improved decision-making capacities, entrepreneurship activities, and socio-economic stability. The study underscores the necessity of integrating structured financial education programs, including specialized courses within neighborhoods, financial advisory services, and youth-targeted economic training initiatives. Practical implications include recommending policymakers to establish robust cooperation between educational entities, financial institutions, and local governance systems. Overall, enhancing financial literacy at the community level emerges as an essential strategy for reducing poverty, increasing economic engagement, and fostering sustainable local economic growth.