The Correlation between Financial Literacy and Family Wealth Distribution in Bandung



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Submitted May 6, 2019
Published May 20, 2019
10.24018/ejbmr.2019.4.2.34

Abstract viewed = 703 times

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Indonesia was considerably hit by the Asian financial crisis in 1997. Fortunately, since the crisis, Indonesia GDP steadily increased from $857 in 2000 to $3,603 in 2016 (World Bank, 2017). However, around 10% of the entire populations still live below the poverty line in 2016. Based on the results of the OJK survey, financial literacy level of Indonesia was 29.66% in 2016. It increased by 7.82% from 2013 alongside with reduction of poverty rate of Indonesia, which decreased from 11.47% in 2013 to 10.70% in 2016. Therefore, is there any relationship between financial literacy and poverty rate or wealth accumulation? From the result of a pilot testing, we hope to find the significant relationship between financial literacy and wealth of families in Bandung.

Keywords: Financial literacy wealth accumulation household financial education

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