Analysis of Financial Literacy in Families Receiving the Family Hope Program (PKH) Benefits in Bogor Regency

Abstract

This study examines financial literacy among families receiving benefits from the Program
Keluarga Harapan (PKH) in Bogor Regency, Indonesia. Despite government efforts to
reduce poverty through initiatives such as PKH, persistent issues of financial
mismanagement highlight the ongoing need for enhanced financial literacy to improve
household welfare. The research aims to assess the level of financial literacy, identify its
determinants, and analyze its impact on financial behaviors and family well-being.
Employing a quantitative methodology, data were collected from 399 beneficiary families
using structured questionnaires and analyzed through Partial Least Squares Structural
Equation Modeling (PLS-SEM). The findings indicate that financial literacy has a
significant effect on financial decision-making, financial skills, and financial behaviors,
with financial awareness and financial experience identified as key influencing factors. The
study emphasizes the critical role of financial education in empowering beneficiaries to
manage social assistance more effectively, thereby contributing to improved family
welfare. Practical implications include recommendations for the development and
implementation of targeted financial literacy programs designed to strengthen the financial
capabilities of PKH recipients