THE IMPACT OF FINANCIAL LITERACY ON WEALTH DISTRIBUTION OF FAMILIES IN BANDUNG AND ITS SURROUNDING

• Main Author: Danella S (19015098), Jasmine
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28232
• Institution: Institut Teknologi Bandung

This research has a purpose to find whether there is a relationship between financial literacy <br /> <br /> level and wealth accumulation of families in Bandung and its surrounding. The data was <br /> <br /> collected by questionnaire and the instrument was distributed directly to the 107 adults. The <br /> <br /> questionnaire was referred to OECD INFE Toolkit for Measuring Financial Literacy Level 2015 <br /> <br /> and PSID Wealth Measurement. This research found that the financial literacy of Bandung city <br /> <br /> and its surrounding is still on medium level. Based on Multiple Linear Regression analysis, the <br /> <br /> tendency of an individual to spend his money rather than save it has the biggest impact in <br /> <br /> determining his financial literacy level. Most families in Bandung city and its surrounding tend <br /> <br /> to have vehicles, savings account, and houses. Moreover, the Pearson Correlation results showed <br /> <br /> that financial literacy level has a significant correlation with the families’ checking or savings <br /> <br /> accounts. An effective financial education can be a tool to increase the financial literacy level <br /> <br /> and the families said that an informative seminar would be an effective method. The research <br /> <br /> regarding financial literacy level and wealth accumulation in family area is still rare in Indonesia, <br /> <br /> especially Bandung city and its surrounding. The findings can be useful for government, <br /> <br /> financial institutions, financial education trainers, and even the families themselves to know the <br /> <br /> importance to have high financial literacy level and increase the financial literacy level in <br /> <br /> Bandung city and its surrounding. Moreover, this research is one of few studies in Indonesia that <br /> <br /> examine financial literacy in family scope. <br /> <br /> Keywords: financial literacy, wealth accumulation, assets, financial education, Bandung