THE INFLUENCE OF FINANCIAL CAPABILITY AND INFORMATION TO FINANCIAL LITERACY AMONG WORKERS IN BANDUNG

• Main Author: ADITYA 29116209, KARINA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28385
• Institution: Institut Teknologi Bandung

People who have low financial literacy tend to perform financial activities that provide a high burden in <br /> <br /> loan transactions, mortgages and payments. Based on the results of OJK's research in 2016, West Java <br /> <br /> has the second order as the highest financial literacy in Indonesia, but in practice there are still many <br /> <br /> illegal investments in the Bandung. This research was conducted in Bandung with the aim of finding <br /> <br /> out the relationship of financial capability, information and department area, which is categorized in <br /> <br /> finance and non-finance department, to financial literacy index. Financial capability is measured by how <br /> <br /> well individual make end meets, manage and choose financial product, how well individual skill and <br /> <br /> knowledge to make financial decision. Using OJK questionnaire which distribute to 389 workers in <br /> <br /> Bandung, the data was processed and analyzed using multiple linear regression. The calculations <br /> <br /> performed in this study are heteroscedasticity test, multicollinearity test, and multiple linear regression <br /> <br /> will be analyzed in simultaneously and partially. Financial capability and information simultaneously <br /> <br /> have a relationship of 35.2% to the financial literacy index and demographic factors simultaneously <br /> <br /> have a relationship in the amount 51.1% to financial literacy index. Partially, there is significant effect <br /> <br /> between gender, age, marital status, educational background, income, additional income, expenditure, <br /> <br /> financial planning, financial budgeting, and information to worker’s financial literacy index. The <br /> <br /> average financial literacy for employees in Bandung was 56.39%, while the classification based on <br /> <br /> literacy level resulted in 45.5% workers having low financial literacy, 36.76% workers having moderate <br /> <br /> financial literacy, and 17.74% workers having a high financial literacy. It is important for individuals to <br /> <br /> have financial ability in terms of planning and budgeting to improve financial literacy, information and <br /> <br /> expertise advice in order to increase financial finance.