Financial illiteracy leads to economic instability in Bosnia and Herzegovina.
The level of financial responsibility of individuals and company managers affects the stability of financial markets and the overall financial system. In Bosnia and Herzegovina, after a period of conflict, many people took on loans without proper financial knowledge, leading to difficulties in repayment. This resulted in a drop in borrowing but an increase in loan repayment problems. The author suggests that a more serious approach to financial responsibility at the individual level is needed for the country's economic well-being.