Household Financial Management in Pekanbaru: The Importance of Financial Literacy and Locus of Control
Keywords:
Financial Literacy, Locus of Control, Household Financial ManagementAbstract
Research Aims:
This research aims to assess the effect of financial literacy and locus of control on household financial management in Pekanbaru.
Design/Methodology/Approach:
This is a quantitative study. The sample size was determined using the GPower 3.1 software, and 100 respondents were selected to participate in this research. The data were analyzed using Structural Equation Modeling (SEM) - Partial Least Square (PLS) modeling.
Research Findings:
The findings of this study indicate that financial literacy and locus of control have a positive and significant effect on household financial management in Pekanbaru. Individuals with high levels of financial literacy consistently create budgets, save and invest their money prudently, and plan for their future financial needs. Individuals with a strong locus of control tend to make sound financial management.
Theoretical Contribution/Originality:
Integrating financial education and psychological aspects into financial literacy practice provides knowledge and mindsets for making sound financial decisions. This promotes effective household financial management, strengthens family economic resilience, and contributes to economic stability and prosperity.
Practical/Policy/Social Implications:
Policymakers should encourage collaboration among financial institutions, educational institutions, and communities to promote comprehensive financial education programs. These programs should incorporate practical approaches, such as educating families to understand how to set financial goals and make financial decisions while considering psychological factors.
Research Limitations/Implications:
This study has several limitations, including a sample size of only 100 respondents, which may not accurately represent the diversity and heterogeneity of household financial managers in Pekanbaru.
Keywords: Financial Literacy, Locus Of Control, Household Financial Management
References
Arganata, T. and Lutfi, L. (2019) ‘Pengaruh Niat Berperilaku, Kecerdasan Spiritual Dan Literasi Keuangan Terhadap Pengelolaan Keuangan Keluarga’, Journal of Business and Banking, 9(1), p. 142. doi: https://doi.org/10.14414/jbb.v9i1.1555.
Bajtelsmit, V.L. (2024) Personal Finance. New Jersey: Wiley.
BPS (2022) Jumlah Perceraian 2020-2022. Available at: https://riau.bps.go.id/indicator/27/123/1/jumlah-perceraian.html.
BPS (2023) Statistik Penduduk Lanjut Usia 2023.
Ermansyah, E. (2021) ‘Analisis Faktor Ekonomi Penyebab Perceraian Pada Masa Pandemi Covid-19 Di Provinsi Riau’, Jurnal Khazanah Ulum Ekonomi Syariah (JKUES), 5(1), pp. 21–30. doi: https://doi.org/10.56184/jkues.v5i1.128.
Gahagho, Y.D., Rotinsulu, T.O. and Mandeij, D. (2021) ‘Pengaruh Literasi Keuangan Sikap Keuangan Dan Sumber Pendapatan Terhadap Perilaku Pengelolaan Keuangan Mahasiswa Fakultas Ekonomi Dan Bisnis Unsrat Dengan Niat Sebagai Variabel Intervening’, Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 9(1), pp. 543–555.
Garman, E.T. and Forgue, R.E. (2014) Personal Finance. 12th edn. Boston: Cengage Learning.
Ghozali, I. (2014) Structural Equation Modeling, Metode Alternatif dengan Partial Least Square (PLS). Semarang: Badan Penerbit Universitas Diponegoro.
Hasan, M., Le, T. and Hoque, A. (2021) ‘How Does Financial Literacy Impact On Inclusive Finance?’, Financial Innovation [Preprint]. doi: https://doi.org/10.1186/s40854-021-00259-9.
Herleni, S. and Tasman, A. (2019) ‘Pengaruh Financial Knowledge dan Internal Locus of Control terhadap Personal Financial Management Behaviour Pelaku UMKM Kota Bukittinggi’, Jurnal Kajian Manajemen dan Wirausaha, 1(1), pp. 270–275.
Kalsum, E.U. et al. (2022) ‘Pengelolaan Manajemen Keuangan Rumah Tangga’, Jurnal Deputi, 2(2), pp. 2807–2809. doi: https://doi.org/10.54123/deputi.v2i2.184.
Khoirunnisa, I.R. and Rochmawati, R. (2021) ‘Pengaruh Literasi Keuangan , Sikap Keuangan , dan Pendidikan Keuangan Keluarga Terhadap Manajemen Keuangan Pribadi dengan Locus Of Control Sebagai Variabel Intervening’, Jurnal Pendidikan Akuntansi, 9(2), pp. 210–219.
Lusardi, A., Hasler, A. and Yakoboski, P.J. (2021) ‘Building up financial literacy and financial resilience’, Mind & Society, 20(2), pp. 181–187. doi: https://doi.org/10.1007/s11299-020-00246-0.
Melicher, R.W. and Norton, E.A. (2017) Introduction to Finance: Market, Investments, and Financial Management. 16th edn. New Jersey: John Wiley & Sons.
Mulyati, S. and Hati, R.P. (2021) ‘Pengaruh Literasi Keuangan dan Sikap terhadap Uang pada Pengelolaan Keuangan Keluarga’, Jurnal Ilmiah Akuntansi dan Finansial Indonesia, 4(2).
Natalia, D.E., Murni, S. and Untu, V.N. (2019) ‘Analisis Tingkat Literasi Dan Pengelolaan Keuangan Pribadi Mahasiswa Di Fakultas Ekonomi Dan Bisnis Univeristas Sam Ratulangi’, Jurnal EMBA, 7(2), pp. 2131–2140.
OECD (2023) OECD / INFE 2023 International Survey Of Adult Financial Literacy.
OJK (2021) Strategi Nasional Literasi Keuangan Indonesia 2021 - 2025.
Peetz, J., Robson, J. and Xuereb, S. (2021) ‘The Role of Income Volatility and Perceived Locus of Control in Financial Planning Decisions’, Frontiers in Psychology, 12(May), pp. 1–13. doi: https://doi.org/10.3389/fpsyg.2021.638043.
Rachman, T.A. et al. (2022) ‘Education Development in Utilizing Indonesian Demographic Dividend : The Road to Become a Developed Country’, Advances in Social Science, Education and Humanities Research, 650, pp. 334–342.
Rizkiawati, N.L. and Asandimitra, N. (2018) ‘The Influence of Demography, Financial Knowledge, Financial Attitude, Locus of Control and Financial Self-Efficacy on the Financial Management Behavior of the Surabaya Community’, Jurnal Ilmu Manajemen (JIM), 6(3), p. 2.
Rosa, I. and Listiadi, A. (2020) ‘Pengaruh Literasi Keuangan, Pendidikan Keuangan Di Keluarga, Teman Sebaya, Dan Kontrol Diri Terhadap Manajemen Keuangan Pribadi’, Jurnal Manajemen, 12(2), pp. 244–252.
Sari, D.U. (2021) ‘Pengaruh Pengetahuan Keuangan , Sikap Keuangan , Dan Locus Of Control Terhadap Perilaku Pengeolaan Keuangan Mahasiswa Manajemen Feb Upgris ( Studi Kasus Pada Mahasiswa FEB UPGRIS Angkatan 2017-2019 )’, Jurnal ilmiah Manajemen, Bisnis dan Ekonomi Kreatif, 1(1), pp. 33–39.
Sudarji, S., Panggabean, H. and Marta, R.F. (2022) ‘Challenges of the Sandwich Generation : Stress and coping strategy of the multigenerational care’, Indigenous: Jurnal Ilmiah Psikologi, 7(3), pp. 263–275.
Sugiyono (2019) Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Tulsian, P.C. and Tulsian, B. (2017) Financial Management. 5th edn. New Delhi: S. Chand Publishing.
Widati, E., Zeinora, Z. and Sasmoko, A. (2017) ‘Manajemen Ekonomi Sebagai Solusi Penataan Kehidupan Keluarga Yang Lebih Baik’, SOSIO-E-KONS, 8 (3), pp. 210-218.
Widiawati, M. (2020) ‘Pengaruh Literasi Keuangan, Locus of Control, Financial Self-Efficacy, dan Love of Money Terhadap Manajemen Keuangan Pribadi’, Prisma (Platform Riset Mahasiswa Akuntansi), 1(1), pp. 97–108.
