Making poor financial choices may have negative consequences on the well-being of an individual. According to OJK (Otoritas Jasa Keuangan), in 2017 digitally published Strategi Nasional Literasi Keuangan Indonesia, Indonesian people are lacking knowledge on how to properly and efficiently manage money or how to optimize it for productive activities. And they don’t fully comprehend the financial services and products offered by a formal financial institute, instead, are more drawn to other investment offers which are potentially harming.
People living in countrysides are usually farmers with unstable and low income, and the level of financial products utility available there is also considered low. An increase in income doesn’t necessarily make these farmers more prosperous, because the importance of financial literacy is almost compulsory, also to reach financial independence.
What is the need for financial literacy you ask? Because it educates and understands the various financial areas including topics related to managing personal finance, money and investing, also giving knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting and retirement. With financial literacy, farmers are hoped to be able to well-managed and plan their finance wisely and in an efficient manner.