The Effect of Financial Literacy, Financial Attitude, and the Use of Financial Technology on the Financial Management of SMEs

Abstract

This paper intends to describe the effect of financial literacy, financial attitude, and the use of financial technology on the financial management of SMEs in the craft industry sector in Klaten. The benefit of this research for the parties involved is that it is expected to afford scientific insight into financial management, especially in SMEs. Several variables that lead to the change are financial literacy, financial attitude, and the use of financial technology. The method used in this research was a descriptive quantitative method with a sample of 40 SMEs in the craft industry sector in Klaten. The type of data used in this examination was primary facts with a questionnaire using a Likert scale. The statistics evaluation technique of this research employed a multiple linear regression with the SPSS model 25 program. This study concluded that financial literacy, financial attitude, and the use of financial technology partially had a positive and significant influence on financial management. From the coefficient of determination statistics, the three impartial variables had a superb and tremendous influence on financial management by 86%. Hence, it can be interpreted that 86% of SMEs' financial management was influenced by the three independent variables in the study , and the remainin g 14% was affected by other factors not specified in the study.