The Effect of Financial Literacy on the Financial Welfare of Households of Genpro SMEs in Bengkulu City, Indonesia

Abstract

The purpose of this study was to determine the effect of financial literacy on the financial well-being of household actors of GENPRO members in Bengkulu city. Study of financial literacy of household actors and analysis of the relationship between financial literacy and financial welfare of household actors as economic welfare. Supervision was carried out on 150 respondents from GENPRO members. The method used is quantitative research, with primary data conducted offline. The results showed that financial behavior and financial knowledge had no significant effect on financial well-being, while financial attitudes had a significant effect on the financial well-being of household actors. It is evident from the results of smart PLS processing, and they realize that the components of financial statements follow experience, investment knowledge is still lacking. This research will have implications for the government and related agencies as well as household actors by describing the importance of adequate financial education facilities for household actors to improve their welfare.