The Effect of Financial Literacy on Financial Management Behavior in the Community of Kupang

Abstract

This study aims to determine the effect of financial literacy on financial management behavior in Kupang community. The population in this study is people who lived in Kupang city and the sample used in this study amounted to 143 respondents. The data in this study were collected through distributing questionnaires. The data analysis was performed using the Partial Least Square (PLS) method. The results indicate that financial literacy has a significant effect on financial management behavior in the Kupang community. The limitation of this study is only focused on respondents who are over 20 years old. The contribution of this research is the public can be aware of knowing the importance of having good financial management behavior.

The Behavioral Finance of MSME in Indonesia: Financial Literacy, Financial Technology (Fintech), and Financial Attitudes

“…This facilitates practical financial management, particularly in making well-informed financial decisions. These results are consistent with previous research conducted by Andriyani and Sulistyowati (2021), Eferyn et al (2022), Kurniawan and Christian Simon (2022), and Anisyah et al (2021), all of which demonstrated a positive impact of financial literacy on financial management behavior. However, it is essential to note that our findings may differ from the research conducted by Adhliana et al (2022) and Waty et al (2021), potentially due to variations in research methodologies, mainly our study's focus on MSME actors.…”