Financial Behaviour and Financial Literacy on Traders in Border Areas of Indonesia


The purpose of this study is to understand the financial behavior and the level of financial literacy at traders in one of the border areas of Indonesia, namely Bengkayang, West Kalimantan. The majority of previous studies examined the financial behavior of investors in the stock market. It raises the motivation to know the financial behavior of the general merchants, even the pedagogues in the border areas that are associated with their level of understanding in managing finances. The border area becomes an interesting object to be studied because of the government’s commitment to build Indonesia from the periphery. By using approach and method of phenomenology research, it is concluded that (1) traders do not have written and systematic financial report that reflect daily income and expense, (2) traders have no commitment to save, (3) trader has negative habit in spending money, (4) the investment for future needs is not a priority, and (5) the limitations of knowledge, lifestyle, and the attitude of not wanting to develop is a factor supporting the formation of bad financial behavior patterns and low level of financial literacy. Various situations that describe the financial behavior and financial literacy are overcome with the role of government and private parties in creating synergies to increase public awareness. With continuous counseling and the availability of financial products that are internalized, good financial behavior and understanding of financial management can be realized.



Keywords: financial behavior, financial literacy, traders, border areas

[1] Chen, H. dan Volpe, R. P. 1998.An analysis of personal financial literacy among college students.Financial services review, 7(2): 107128

[2] Creswell, John W dan Clark, Vicky L. Plano. 2007. Designing and Conducting Mixed Methods Research. Thousands Oak, CA: Sage Publications,Inc.

[3] Dew,Jeffery., Xiao Jing Jian. 2011. The Financial Management Behavior Scale: Development and Validation.Journal of Financial Counseling and Planning Volume 22: 43-59

[4] Herdijono, Irene dan Lady Angela Damanik. 2016. Pengaruh Financial Attitude, Financial Konwledge, Parental Income terhadap Financial Management Behaviour. Jurnal Manajemen Teori dan Terapan Tahun 9. No. 3, Desember 2016

[5] Henry Faizal Noor 2009. Investasi, Pengelolaan Keuangan Bisnis,dan Pengembangan Ekonomi Masyarakat,Jakarta: Indeks.

[6] Hilgert,Marianne A., Jeanne M.Hogarth dan Sondra Baverly.2003. Household Financial Management: The Connection between Knowledge and Behavior.Federal Reserve Bulletin,89(7):309-322.

[7] Ida dan Chintia Yohana Dwinta.2010. Pengaruh locus of control, financial knowledge, dan income terhadap financial management behavior. JurnalBisnis dan Akuntansi, Vol. 12, No. 3: 131 – 144.

[8] Kholilah Naila Al, Iramani Rr. 2013. Studi Financial Management Behavior pada Masyarakat Surabaya,Journal of Business and Banking Volume 3, No. 1: 69 – 80

[9] Manurung, A.H. 2012. Teori Investasi: Konsep dan Empiris. Jakarta: PT Adler Manurung Press

[10] Norvilitis, J. M., dan Maria, P. S. 2002. Credit card debt on college campuses: Causes, consequences and solutions. College Student Journal, 36(3), 357-364.

[11] Palmer, T. S., Pinto, M. B., & Parente, D. H. 2001. College students’ credit card debt and the role of parental involvement: Implications for public policy. Journal of Public Policy & Marketing, 20(1), 105-113.