Financial literacy has emerged as a crucial factor in promoting economic stability and resilience, particularly in Montenegro. With the increasing complexity of financial products and the growing need for individuals to make sound financial decisions, the importance of financial literacy cannot be overstated. This study employs a quantitative, survey-based approach to explore the association between financial literacy levels and measures of economic stability, including savings rates, active debt management, and access to financial products. Data were collected through a representative, two-stage stratified sample of 1000 Montenegrin adults aged 18–79, ensuring comprehensive geographic coverage across all Montenegrin municipalities and balanced representation by gender and age. This stratification enables a detailed analysis of financial literacy trends across the population. Correlation analysis reveals that higher levels of financial literacy are associated with better financial practices, such as increased savings and responsible credit use, thereby enhancing economic resilience at the household level. Moreover, improved financial literacy contributes to sustainability by fostering long-term financial stability, reducing inequalities, and promoting inclusive economic growth. The findings suggest that financial literacy can mitigate the impact of economic shocks, emphasizing the need for policies that promote financial education as a tool for sustainable development. This study contributes to the literature on financial literacy in emerging economies and offers actionable insights for policymakers in Montenegro and similar contexts, highlighting financial education as a pathway to individual and national economic resilience.

Small- and medium-sized enterprises (SMEs) are central to sustainable development in transition economies, yet their financial fragility often limits resilience and the capacity to invest in innovation and responsible practices. Despite growing interest in SME, financial health and its role in sustainability, empirical evidence from small transition economies like Montenegro remains scarce, particularly on how liquidity and profitability dynamics underpin conditions for SDG-aligned growth. This study addresses this gap by analyzing how core financial indicators—cash position, capital structure, and working capital efficiency—affect liquidity and profitability among 345 Montenegrin SMEs across manufacturing, services, and trade. Using OLS and robust regression models, results reveal that a higher cash-to-revenue ratio and moderate leverage significantly enhance both short-term solvency and profitability, while working capital efficiency shows nuanced effects and sector-specific patterns emerge in capital-intensive industries. These findings highlight financial management as a foundation for SME resilience, creating financial preconditions for innovation and digital investments in aligned with SDGs (goals 8, 9, 12). Policy recommendations focus on improving finance access and financial literacy to foster innovation-driven, sustainable SME models aligned with the 2030 Agenda.

Financial literacy has emerged as a crucial factor in promoting economic stability and resilience, particularly in the context of Montenegro. With the increasing complexity of financial products and the growing need for individuals to make sound financial decisions, the importance of financial literacy cannot be overstated. The paper discusses how financial literacy could help Montenegro's households, which are highly vulnerable to economic volatility and have limited access to financial services. Using a quantitative survey-based approach, research studies in this paper explore the association of levels of financial literacy with measures of economic stability that involve savings rates, active debt management, and access to financial products. The correlation analysis would therefore show that high levels of financial literacy relate to better financial practices of saving and utilizing credit in a responsible manner, hence contributing to economic resilience at the household level. Findings suggest that financial literacy can mitigate the impact of economic shocks, underscoring the need for policies that promote financial education as a tool for sustainable development. This study contributes to the literature on financial literacy in emerging economies and provides actionable insights for policymakers in Montenegro and similar contexts, emphasizing financial education as a pathway to individual and national economic resilience.