The Correlation between Financial Literacy and Family Wealth Distribution in Bandung

Abstract

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.