The Influence of Financial Literacy, Financial Awareness, And Income On Financial Well-Being With Financial Behavior And Financial Inclusion As Intervening Variables (A Case Study On Families In Surabaya)

Abstract

As a result of the Covid-19 pandemic, the Indonesian economy has been severely affected. Surabaya city's economy contracted by -4.85% in 2020 and by 2021 it grew to 4.29%. Surabaya's poverty rate in 2021 is 5.23%, or 152,489, an increase of just 5.02% from 2020. As a result, household consumption, the mainstay of the economy, slowed significantly, impacting various performance sectors. Fiscal welfare is important for governments to accelerate economic recovery. The purpose of this study is to analyze the impact of financial management on financial literacy, financial awareness, income, financial behavior, and financial inclusion of Surabaya families. This study used a quantitative method with a simple random sampling method. This study uses primary data through the distribution of questionnaires. The data analysis used in this study is partial least squares (PLS). The results of this study show that financial literacy has a significant and positive effect on financial behavior, financial literacy has a significant and positive effect on financial inclusion, financial literacy has no significant effect on financial well-being, and financial perceptions has no significant effect on financial well-being. Financial behavior, Financial perceptions have a significant positive impact on financial inclusion, Financial perceptions have no significant impact on financial well-being, Income has a significant positive impact on financial behavior, Income has a significant positive impact on financial inclusion Affects positively, income does not have a significant impact on financial well-being. In addition, financial activity brings income from financial well-being. Financial behavior, on the other hand, cannot mediate the impact of financial literacy and financial awareness on financial well-being. Also, financial inclusion cannot communicate the impact of financial literacy, financial awareness, or income on financial well-being.