Financial Literacy and Consumer Debt: A Survey of Low Income Households in Depok, West Java, Indonesia

DOI

10.2991/icbmr-17.2017.17How to use a DOI?

Keywords

Financial literacy, Debt, Money management, Numeracy Skills, Low-Income, Indonesia

Abstract

This study aims to examine the impact of financial literacy on consumer debt as measured by debt-to-income ratio, number of lenders, and net worth among low-income households in over-indebted condition. The key components of financial literacy used are numeracy and money management skills. This study is conducted through a survey on 103 low-income households in Depok, West Java. The main finding from the analysis is that neither numeracy nor money management skills significantly affect debt-to-income ratio and net worth. However, money management skills are found to have a significant influence on the number of lenders. As money management skills improve, the number of lenders increases. Numeracy skills, however, has no significant effect on the number of lenders. This finding differs from that of previous studies, which suggest that money management skills would decrease the number of lenders. This study has an implication on educational programs intended to enhance financial literacy among low-income households.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Angelica Fadya Noventi
AU  - Dwi Nastiti Danarsari
PY  - 2017/11
DA  - 2017/11
TI  - Financial Literacy and Consumer Debt: A Survey of Low Income Households in Depok, West Java, Indonesia
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 176
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.17
DO  - 10.2991/icbmr-17.2017.17
ID  - Noventi2017/11
ER  -