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Financial literacy in the COVID-19 pandemic: pressure conditions in Indonesia

Author

Listed:
  • Anik Yuesti

    (Mahasaraswati University of Denpasar, Indonesia)

  • Ni Wayan Rustiarini

    (Mahasaraswati University of Denpasar, Indonesia)

  • Ni Nyoman Ayu Suryandari

    (Mahasaraswati University of Denpasar, Indonesia)

Abstract

The COVID-19 (novel coronavirus disease 2019) has become a worldwide disaster. This pandemic not only affected the world economy but also the family economy. Good financial literacy will help individuals avoid financial problems, especially during the COVID-19 pandemic. Financial literacy can facilitate individuals to manage their income well even in demanding situations. This study aims to analyse how financial literacy helps in the depression condition of the COVID-19 pandemic. This study takes a sample of 396 household heads. This study uses partial least square (PLS) analysis to analyse the data. Results show that all financial attitudes, behaviour and literacy variables positively affect financial literacy and wellbeing. The implication of this research is that financial literacy, which is reflected by financial attitudes and behaviour plays a key role in public financial welfare.

Suggested Citation

  • Anik Yuesti & Ni Wayan Rustiarini & Ni Nyoman Ayu Suryandari, 2020. "Financial literacy in the COVID-19 pandemic: pressure conditions in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 884-898, September.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:884-898
    DOI: 10.9770/jesi.2020.8.1(59)
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    References listed on IDEAS

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    1. James J. Choi & David Laibson & Brigitte C. Madrian, 2010. "Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds," Review of Financial Studies, Society for Financial Studies, vol. 23(4), pages 1405-1432, April.
    2. Paul Gerrans & Craig Speelman & Guillermo Campitelli, 2014. "The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 145-160, June.
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    Cited by:

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    2. Sharma, Gagan Deep & Shahbaz, Muhammad & Singh, Sanjeet & Chopra, Ritika & Cifuentes-Faura, Javier, 2023. "Investigating the nexus between green economy, sustainability, bitcoin and oil prices: Contextual evidence from the United States," Resources Policy, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    financial literacy; financial attitude; financial behaviour; financial wellbeing; a case study;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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