IMPROVING HOUSEHOLD FINANCIAL DECISION-MAKING THROUGH FINANCIAL LITERACY EDUCATION AMONG TERATAI FAMILY WELFARE EMPOWEREMENT MEMBERS
DOI:
https://doi.org/10.21512/seeij.v10i2.16025Keywords:
financial literacy, Financial decision making, financial counseling, household financial resilience, household financial managementAbstract
Managing household finances was crucial in preserving financial stability at the family level. Unfortunately, many families struggled with needs vs. wants, order of spending, savings, and having an emergency fund. The purpose of this community service program was to identify the issues of poor financial decision-making at the household level, due to a lack of financial literacy among women who managed household finances. The program utilized educational counseling with a pre-test–post-test design to assess the evolution of financial literacy. The total number of program participants was 33, and the analysis was done on the paired data of 17 participants. The data were obtained using a developed questionnaire that assessed the participants' understanding of priority spending and the management of household finances. The program was assessed using descriptive statistics and a paired sample t-test. Financial literacy scores improved significantly after the program (p < 0.001). The participants were better able to distinguish between needs vs. wants and understand the order of spending and the principles of household financial management. The results of the program showed that financial literacy counseling was successful in improving financial knowledge and enhancing the quality of household financial decisions.
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