The Effect of Financial Literacy Programs on Household Saving Behavior : JEL Classification: D14, G41, G50, I22, O16

Wulandari Wulandari; Muhammad Irfandi

doi:10.37899/mjde.v2i1.245

Authors

Wulandari Economics, Universitas Islam Negeri Alauddin Makassar, Indonesia
Muhammad Irfandi Economics, Universitas Islam Negeri Alauddin Makassar, Indonesia

DOI:

https://doi.org/10.37899/mjde.v2i1.245

Keywords:

Financial Behavior, Financial Inclusion, Financial Literacy, Household Savings, Urban Households

Abstract

Financial literacy plays a critical role in promoting household financial resilience, particularly in rapidly urbanizing economies where individuals face increasingly complex financial decisions. This study aimed to examine the effectiveness of financial literacy programs in improving household saving behavior among urban households in Indonesia and to identify the contextual factors influencing program outcomes. A quasi-experimental mixed-methods approach was employed, involving 150 participating households. Quantitative data were collected through pre- and post-program surveys, while qualitative evidence was obtained from in-depth interviews and focus group discussions. The findings indicate that participation in financial literacy programs substantially improved household saving behavior, with average monthly savings increasing by 55.6% across all participants. Lower-income households experienced the greatest proportional improvements, while qualitative findings revealed enhanced budgeting skills, financial awareness, saving discipline, and confidence in financial decision-making. Nevertheless, limited access to formal financial services remained a significant obstacle preventing participants from fully applying their financial knowledge. The novelty of this study lies in integrating behavioral outcomes with qualitative evidence to demonstrate that the effectiveness of financial literacy programs depends not only on individual financial knowledge but also on supportive institutional and socioeconomic conditions. These findings highlight the importance of combining financial literacy initiatives with financial inclusion policies to strengthen household financial resilience and promote sustainable urban economic development.

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