The Influence of Financial Literacy towards Financial Behavior (Study on the Small Medium Enterprises Under the Guidance of Bank Indonesia in Banyumas)

The ability to manage personal finance has become increasingly important in today’s world. The study about personal finance is challenging to be investigated, due to the rare of research regarding this topic. This research is aim to know the influence of demographic factors towards financial literacy and its impact towards financial behavior from the members of SMEs under the guidance of Bank Indonesia in Banyumas. The research methodology that used in this study is a case study with survey research method. Convenience sampling technique derived from non-probability sampling techniques are used for sample selection. The sample of this research are 83 respondents and used the OLS as the model estimation. The results of this study indicate that education significantly influences the financial literacy level and the financial behavior level. Then, income also significantly affects financial behavior, but does not affect a person's financial literacy. Surprisingly, the financial literacy does not affect the financial behavior of the members and other variables such as gender, age, and marital status also do not affect both financial literacy level and financial behavior level. This result could give evidence about the factors affecting financial literacy and financial behavior thus it could give the implications to the Bank Indonesia and the SMEs for increasing the personal financial ability as a whole