Financial Literacy and Investment Decision in Lower Middle Income

Abstract

Financial Literacy should be considered as one of basic intelegence in this modern civilization. As growth of change in internet, digital money and e-banking will impact in many area of financial trasactions in financial activities. Saving behavior and investment decision were become factors that impacted to income allocation, especially for most people in working class. At lower middle income class, they also allocate their income for saving and investment purposes. This research was held in Jakarta, with data sampling from lower middle income class or at UMR level (Upah Minimum Regional) or Minimum Standard Wage level. This paper focus for finding out some factors that are giving significant impact on saving behavior or investment decision. Those factors were financial concept or financial knowledge, financial goals, capital market knowledge and environment factor. This paper give explanation on which factors give significant impact on investment decision and how Financial Literacy give impact to retirement preparedness for lower middle income class.