THE IMPACT OF FINANCIAL ATTITUDES AND FINANCIAL LITERACY ON FINANCIAL WELLBEING WITH FAMILY FINANCIAL MANAGEMENT AS A MODERATING VARIABLE: A CASE STUDY OF UMKM SUMBAWA DISTRICT

Abstract

Low financial knowledge hinders financial walfare and has a direct impact on the quality of life of individuals and communities. Ignorance in financial management can lead to poor decisions, such as ineffective debt management, inappropriate investments, and lack of preparation for emergency needs. Conversely, adequate financial knowledge is essential for the welfare and financial stability of the community, especially for Micro, Small and Medium Enterprises (MSMEs). This study aims to analyze the effect of financial attitudes and financial literacy on financial walfare, with family financial management as a moderating variable. The analytical tool used is Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach. The population in this study included all MSME actors in Sumbawa Regency, totaling 1,362. Given the large population, the determination of the sample size was carried out using the Slovin formula, so that the number of samples in this study was 200 respondents with a 5% margin of error. Data were collected through a questionnaire using a Likert scale with a nominal scale of 1-4. The results showed that financial attitude, financial literacy, and family financial management have a positive and significant influence on financial walfare partially. In addition, family financial management can moderate (strengthen) the influence of financial attitudes and financial literacy on financial walfare in MSME actors in Sumbawa Regency.