Improving Financial Literacy as the Key to Economic Development Based on Financially Intelligent Communities: Case Study on PKK Mothers in Wonorejo Village, Jepara Regency
Yanto1, Sisno Riyoko 2, Gun Sudiryanto3, Fandy Indra Pratama4, Darmanto5

1,2,3, Universitas Islam Nahdlatul Ulama Jepara
4,5, Universitas Wahid Hasyim Semarang

Abstract

This study aims to analyze the effect of financial literacy on the economic welfare of PKK mothers in Wonorejo Village, Jepara Regency. Financial literacy includes the ability to manage budgets, understand investments, and financial planning that supports improving the quality of life. The study used a survey method with a sample of 100 PKK mothers. Data were collected using a questionnaire consisting of aspects of knowledge, attitudes, and financial behavior. The results of the descriptive analysis showed an average financial literacy score of 75.72 (SD = 12.4), while the average economic welfare score was 71.85 (SD = 15.6). Pearson correlation analysis produced a value of r = 0.63 with p <0.001, indicating a moderate positive relationship between financial literacy and economic welfare. The results of simple linear regression showed a prediction model: With R-squared = 0.40, about 40% of the variability in economic welfare can be explained by financial literacy. Every 1 point increase in financial literacy correlates with a 0.6 point increase in economic welfare. This finding confirms the importance of financial literacy programs as a strategic effort to improve people^s economic welfare.

Keywords: Financial literacy, economic welfare, community empowerment, PKK mothers, economic development

Topic: Economics