The Influence of Financial Literacy on Village Fund Budget Absorption

Abstract

A good understanding of financial literacy will make financial planning, management, and control better. Financial literacy is the process by which individuals understand their financial situation and learn how to strengthen their finances by instilling the habit of saving, budgeting, planning, and making sound financial decisions. Not only limited to individuals, good financial literacy will also have a broad impact, for example on the absorption of village budget funds, which are provided by the government to improve existing development infrastructure in villages. This research aims to determine the effect of financial literacy on village budget absorption. This type of research uses quantitative descriptive, using regression testing via the SPSS application. The research results show that financial literacy has a significant effect on village budget absorption. The positive impact that arises is the improvement of existing infrastructure in the village so that national development can continue to move in a better direction.