FINANCIAL LITERACY: A STRATEGY TO IMPROVE HOUSEHOLD’S WELFARE IN SURABAYA

The purpose of this study is to develop household character-based financial literacy in
Surabaya. This research was conducted in Wonokromo and Wonocolo districts. Financial literacy is
related to one's competence to manage their finances and is able to utilize the available resources to
achieve their goals. The research used focus group discussion and survey to the community. Result
of study found that the most common factors affecting financial literacy include financial planning
or budgeting, savings, loans and investment. Specific targets for financial literacy are expected for a
family to explain how to prosper and achieve family welfare. The factors in this study are parents'
socioeconomic status, parental involvement, level of education and parental expertise. The benefits
of this research are useful for: (1) the Surabaya city government as one of the bases in making
poverty alleviation policies, (2) increasing financial knowledge for the community, (3) increasing
the power of young people in managing finances.
Keywords: Financial literacy, household’s welfare, financial knowledge, budgeting