This article aims to discuss financial literacy as an integral part of poverty alleviation programs through women's economic participation. Financial literacy is a supporter in increasing economic participation. Financial literacy is a set of information that refers to an individual's ability to effectively assess and decide the use and management of money. The method used in this study is a literature review of several articles related to the research topic as well as other report documents and relevant case studies. Economic participation is a medium for women in an effort to reduce poverty in the economic sector. Women have an important role in the poverty reduction agenda through economic participation. Women's economic participation will not function properly without good financial literacy. In other words, financial literacy strongly supports women's economic participation because in the knowledge of such participation, the use and management of finances is very much needed. In Indonesia, financial literacy has only reached 38%, and the level of community economic participation is demonstrated through the labor force participation rate of more or less 50%. However, women's financial literacy is reportedly still low, reaching only 25%. This has implications for the achievement of women's economic participation, which is also below the standard, only reaching 36.62%. Thus, financial literacy for women is an alternative public policy for poverty reduction programs.
Abstract. This study aims to examine financial literacy in women empowerment as awareness of this issue initially emerged due to the global economic crisis which occurred between 2007 and 2010. One of the causes of the financial crisis, in addition to overlapping policies and greed, was the prevalence of financial illiteracy that had ultimately led some to wrong decision making in financial matters. The impact of making wrong decisions will affect the future state (situation) of national economy. Through financial literacy, individuals included within the poorest category in economic terms, are expected to be given proper guidance and financial information so that they become empowered, meaning that they will use the guidance and information they have to improve their financial situation. Financial literacy can be a tool for achieving social justice through empowerment, which subsequently relates to women empowerment. The empowerment of women has been conducted expansively across the globe, and one of the attempts is through microfinance. This study uses literature study as its methodology and it concludes that financial literacy can also be considered as a reference to participate in supporting the success of empowering women through microfinance activities.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.