The Impact of Social Factors on Financial Literacy

Budhiningtyas Dian L, Siregar Hermanto, Ahmad Maulana Tb. Nur

Abstract: Governments in many countries realized that lack of financial literacy is a huge challenge that has implications for the sustainability of a country's economy. Financial literacy provides a process in stimulating economic development to grow more rapidly in which the role of financial literacy is to increase people financial capabilities so that it will enhance the growth of savings and investment society through capital formation. The purpose of this study is to analyze the impact of social factors on the level of financial literacy. Social factors used in this study include age, marital status, education, jobs and income level. A total of 118 respondents who have attended financial literacy training were used in this study. The research method used in this research is multiple linear regressions. The results of the study showed that there are two factors that affect the level of financial literacy namely the level of income and marital status.

Keywords: financial literacy, social characteristics, multiple linear regressions