Analysis of Investment Interest Behavior and Financial Literacy Level of The Poor in Gorontalo Province

Meriyana Fransisca Dungga; Raflin Fransisca Hinelo

doi:10.32535/jicp.v8i1.3950

Analysis of Investment Interest Behavior and Financial Literacy Level of The Poor in Gorontalo Province

Meriyana Fransisca Dungga, Raflin Fransisca Hinelo

Abstract

This paper aims to explore the investment interest behavior and financial literacy level of the poor in Gorontalo Province. This research uses a qualitative approach with a literature study method combined with field interviews as a form of direct observation to strengthen the theoretical study. The results of the author's research show that the investment behavior and interest as well as the level of financial literacy of the poor in Gorontalo Province are still classified as low to moderate. People tend to choose traditional investments that are easy to understand and community-based, but are less able to optimally increase asset value. Low understanding of modern investment products and weak financial management causes people to be trapped in a subsistence economy. Therefore, poverty alleviation efforts need to be accompanied by an increase in financial literacy that is contextual, community-based, and supported by policies and strengthening of local microfinance institutions so that investment can become a tool for long-term economic empowerment

Full Text:

PDF

References

Abdussamad, Z. (2021). Buku Metode Penelitian Kualitatif. CV. Syakir Media Press. 146 hlm. ISBN: 9786237547334.

Adamkovi?, M., & Marton?ik, M. (2017). A Review of Consequences of Poverty on Economic Decision-Making: A Hypothesized Model of a Cognitive Mechanism. Frontiers in Psychology, 8, 1784. https://doi.org/10.3389/fpsyg.2017.01784

Adlini, M. N., Dinda, A. H., Yulinda, S., Chotimah, O., & Merliyana, S. J. (2022). Metode penelitian kualitatif studi pustaka. Edumaspul: Jurnal Pendidikan, 6(1), 974–980. https://doi.org/10.33487/edumaspul.v6i1.3394

Aithal, P. S. (2024). Financial literacy for economic empowerment: Microfinance initiatives in Indian SHGs. Poornaprajna International Journal of Teaching & Research Case Studies (PIJTRCS), 1(1), 80-91.

Alley, I. (2024). Deposit Insurance and Financial Inclusion. Journal of Economic Studies, ahead-of-print. https://doi.org/10.1108/JES-12-2023-0726

Anggiana, A., Triagita, A., Maharani, C., Shalsabella, E., Mariana, G., Rizqiyah, J., ... & Ariyandi, I. R. (2024). Sosialisasi dan Edukasi Literasi Keuangan pada Masyarakat Penerima Bantuan Sosial dalam Meningkatkan Kesejahteraan Masyarakat Miskin. Jurnal Ilmiah Pengabdian Pada Masyarakat, 2(1), 68-72.

Arham, M. A., & Payu, B. R. (2019). Economics Development Analysis Journal Village Fund Transfer and Rural Poverty in Indonesia Article Info. Economics Development Analysis Journal, 8(4), 324–334. http://journal.unnes.ac.id/sju/index.php/edaj

Arham, M. A., Akib, F. H. Y., & Anam, H. (2022). Does The Education Sector Contribute to Overcoming Poverty in The Tomini Bay Area of Indonesia? Method of Moments Quantile Approach. International Journal of Economics and Finance Studies, 14(4), 114–134. https://doi.org/10.34109/ijefs.

Arham, M. A., Humalanggi, M., Tantawi, R., & Kusuma, C. A. (2024). Can fiscal transfers effectively reduce poverty in the Gorontalo Province? Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 11(6 SE-Articles), 449–464. https://doi.org/10.22437/ppd.v11i6.28489

Ariani, K. F., Rahmawati, T. I., & Anggraini, D. V. (2023). Peningkatan Literasi Keuangan Masyarakat Pedesaan Guna Mendorong Tingkat Inklusi Keuangan Indonesia Perspektif Hukum Perbankan. Jurnal Multidisiplin Ilmu Akademik, 1(6), 55–62. https://doi.org/10.61722/jmia.v1i6.2874

Asiama, R. K., & Amoah, A. (2020). Improving loan repayment in Ghana: Does financial literacy matter? Cogent Economics & Finance, 8(1), 1787693. https://doi.org/10.1080/23322039.2020.1787693

Banerjee, A., Duflo, E., Glennerster, R., & Kinnan, C. (2015). The Miracle of Microfinance? Evidence from a Randomized Evaluation. American Economic Journal: Applied Economics, 7(1), 22–53. https://doi.org/10.1257/app.20130533

Barberis, N., & Xiong, W. (2009). What drives the disposition effect? An analysis of a long-standing preference-based explanation. The Journal of Finance, 64(2), 751–784. https://doi.org/10.1111/j.1540-6261.2009.01447.x

Baveja, G. S., & Verma, A. (2024). Impact of Financial Literacy on Investment Decisions and Stock Market Participation using Extreme Learning Machines. arXiv. https://arxiv.org/abs/2407.03498

Bayakhmetova, L., et al. (2023). Impact of financial literacy on investment decisions in developing countries: The example of Kazakhstan. Asian Journal of Applied Research, 5(1), 1–10. https://doi.org/10.18488/journal.5008/2023.5.1/5008.1.1.10

Bertoletti, L., Borraz, F., & Sanromán, G. (2023). Consumer Debt and Poverty: The Default Risk Gap. GLO Discussion Paper No. 1439. https://doi.org/10.2139/ssrn.4480340

Bian, Y., Wang, X., & Zhang, Q. (2023). How Does China's Household Portfolio Selection Vary with Financial Inclusion?. arXiv. https://arxiv.org/abs/2311.01206

Blades, L. (2018). Investing 101: What You Should Know Before Investing Your Money. Teen Vogue. https://www.teenvogue.com/story/investing-101-what-to-know-about-investing-terms

Bryant, J. H. (2024). Financial Literacy Is the Civil Rights Issue of This Generation. Time. https://time.com/6694236/financial-literacy-john-hope-bryant/

Budiman, J., Purwaningsih, E., Basri, M., Warneri, W., Sumartono, B. G., & Kuswanti, H. (2023). Peningkatan Literasi Keuangan Rumah Tangga pada Kelompok Pemberdayaan Kesejahteraan Keluarga Desa Semangau. Jurnal Pengabdian Masyarakat Khatulistiwa, 5(2), 112–120.

Cerulli Associates. (2024). Biases Can Cloud Your Money Decisions. Overconfidence and 6 More to Watch Out for. Barron's. Retrieved from https://www.barrons.com/advisor/articles/behavioral-finance-advice-62a725a9

Chatterjee, O., Gopalakrishnan, B., & Mohapatra, S. (2024). Gold in Household Portfolios During a Pandemic: Evidence from India. Review of Economics, 93, 1288–1306. https://doi.org/10.1016/j.reveco.2024.06.007

Dasgupta, M., & Ponnathpur, R. (2020). Savings in Gold by Low-Income Households in Rural India. Indian Institute of Management Ahmedabad.

Disney, R., & Gathergood, J. (2016). Financial literacy and over-indebtedness in low-income households. International Review of Financial Analysis, 48, 1–11. https://doi.org/10.1016/j.irfa.2016.08.004

Duflo, E., Banerjee, A., Kremer, M., & Robinson, J. (2022). A Behavioral Economics Approach to Poverty Reduction. Annual Review of Economics, 14(1), 485–509. https://doi.org/10.1146/annurev-economics-051420-014117

Dupas, P., & Robinson, J. (2013). Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya. American Economic Journal: Applied Economics, 5(1), 163–192. https://doi.org/10.1257/app.5.1.163

Funga?ová, Z., Hasan, I., & Weill, L. (2022). Trust in Banks. Journal of Economic Behavior & Organization, 190, 1–17. https://doi.org/10.1016/j.jebo.2021.07.023

Galiani, S., Gertler, P., & Navajas-Ahumada, C. (2022). Trust and Saving in Financial Institutions by the Poor. Journal of Development Economics, 159, 102981. https://doi.org/10.1016/j.jdeveco.2022.102981

Gorontalo, B. P. S. P. (2025). Provinsi Gorontalo Dalam Angka 2025. In Provinsi Gorontalo Dalam Angka 2025 (Vol. 25). Gorontalo, Badan Pusat Statistik Provinsi.

Guiso, L., Sapienza, P., & Zingales, L. (2008). Trusting the Stock Market. The Journal of Finance, 63(6), 2557–2600. https://doi.org/10.1111/j.1540-6261.2008.01408.x

Gunawan, W., Kristiastuti, F., & Sari, U. K. (2022). Pengaruh Literasi Keuangan terhadap Minat Investasi pada Mahasiswa Fakultas Ekonomi Universitas Nurtanio Bandung. Jurnal Bisnis, Manajemen & Ekonomi, 19(2), 494–512. https://doi.org/10.33197/jbme.vol19.iss2.2021.823

Hermawan, A., Minaryanti, A. A., Septiawan, B., Hadiyat, Y. R., & Noch, R. M. (2023). Mendorong Literasi dan Inklusi Keuangan terhadap Pengelolaan Keuangan Masyarakat. JMM (Jurnal Masyarakat Mandiri), 8(3), 768–774. https://doi.org/10.31764/jmm.v8i3.23078

Hilbert, L. (2024). The Psychological Poverty Trap: How Lack of Money Impacts Decision-Making, Procrastination and Loss of Control. Leiden University. https://www.universiteitleiden.nl/en/news/2024/03/the-psychological-poverty-trap-how-lack-of-money-impacts-decision-making-procrastination-and-loss-of-control

Jaffer, S., et al. (2014). Trust in financial institutions: A survey. De Nederlandsche Bank Working Paper No. 693. https://www.dnb.nl/media/l2ofthn5/working-paper-no-693_tcm47.pdf

James, N., & Menzies, M. (2023). Portfolio diversification with varying investor abilities. arXiv preprint arXiv:2311.06519.

Jange, B., Karsim, K., Hastin, M., Kesek, M. N., Ramatni, A., & Karim, K. (2025). Pelatihan Literasi Keuangan bagi Pengambilan Keputusan Investasi Masyarakat: Studi Empiris di Kota dan Desa. Community Development Journal: Jurnal Pengabdian Masyarakat, 6(1), 1036–1040. https://doi.org/10.31004/cdj.v6i1.40495

Jusuf, R. D., Monoarfa, M. A. S., & Dungga, M. F. (2023). Pengaruh Literasi Keuangan, Experienced Regret, Dan Risk Tolerance Terhadap Keputusan Investasi Masyarakat Di Kota Gorontalo. JAMBURA: Jurnal Ilmiah Manajemen dan Bisnis, 6(2), 932-944. https://doi.org/10.37479/jimb.v6i2.21900

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185

Kamakia, M. G., Mwangi, M., & Mwangi, M. (2023). Impact of financial literacy, mental budgeting and self-control on investment decisions. PLOS ONE, 18(3), e0264535. https://doi.org/10.1371/journal.pone.0264535

Kamran, S., & Uusitalo, O. (2024). How Informal Financial Service Institutes Facilitate the Financial Inclusion of Low-Income, Unbanked Consumers. International Journal of Bank Marketing, 42(6), 1232–1263. https://doi.org/10.1108/IJBM-03-2023-0148

Karlan, D., & Zinman, J. (2011). Microcredit in Theory and Practice: Using Randomized Credit Scoring for Impact Evaluation. Science, 332(6035), 1278–1284. https://doi.org/10.1126/science.1200138

Karlan, D., Savonitto, B., Thuysbaert, B., & Udry, C. (2017). Impact of Savings Groups on the Lives of the Poor. Proceedings of the National Academy of Sciences, 114(12), 3079–3084. https://doi.org/10.1073/pnas.1611520114

Kidron, R., & Kreis, Y. (2020). Fear and Trust in Financial Institutions: A Content Analysis. Family and Consumer Sciences Research Journal, 48(3), 250–265. https://doi.org/10.1111/fcsr.12345

Koffi, C. H. A., Djeundje, V. B., & Pamen, O. M. (2024). Impact of Social Factors on Loan Delinquency in Microfinance. arXiv preprint arXiv:2410.13100. https://arxiv.org/abs/2410.13100

Koomson, I., Ansong, D., Okumu, M., & Achulo, S. (2022). Effect of Financial Literacy on Poverty Reduction Across Kenya, Tanzania, and Uganda. Global Social Welfare, 10(1), 93–103. https://doi.org/10.1007/s40609-022-00259-2

Ksoll, C., Lilleør, H. B., Lønborg, J. H., & Rasmussen, O. D. (2016). Impact of Village Savings and Loan Associations: Evidence from a Cluster Randomized Trial. Journal of Development Economics, 120, 70–85. https://doi.org/10.1016/j.jdeveco.2015.12.003

Kundala, M. M., Setyowati, H., Purwanto, W., Safitri, E., Nurrohmah, U., & Mony, Y. Y. (2024). Literasi Pengelolaan Keuangan Keluarga untuk Peningkatan Kesejahteraan Masyarakat. Jurnal Pengabdian Masyarakat Widya Wiwaha, 2(2), 67–72.

Le Polain, M., Sterck, O., & Nyssens, M. (2018). Interest Rates in Savings Groups: Thrift or Threat? World Development, 101, 162–172. https://doi.org/10.1016/j.worlddev.2017.08.018

Liu, P., Dwarakanath, K., Vyetrenko, S. S., & Balch, T. (2022). Limited or Biased: Modeling Sub-Rational Human Investors in Financial Markets. arXiv preprint arXiv:2210.08569.

Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of pension economics & finance, 10(4), 497-508.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5

Mandell, L., & Klein, L. S. (2009). The impact of financial literacy education on subsequent financial behavior. Journal of Financial Counseling and planning, 20(1).

Marwal, M. R., Amalo, F., Hasyim, A. M., Normansyah, N., & Suyatno, A. (2023). Strategi Peningkatan Literasi Keuangan untuk Masyarakat Berpenghasilan Rendah. Community Development Journal: Jurnal Pengabdian Masyarakat, 4(5), 123–130. https://doi.org/10.31004/cdj.v4i5.20923

Mohapatra, S., Chatterjee, O., & Gopalakrishnan, B. (2023). Gold in Household Portfolios During a Pandemic: Evidence from India. Review of Economics, 93, 1288–1306. https://doi.org/10.1016/j.reveco.2024.06.007

Moser, C., & Dani, A. A. (2008). Assets, Livelihoods, and Social Policy. World Bank Publications.

Ndruru, D. M., Harefa, I., Zebua, S., & Hulu, P. F. (2023). Pengaruh Literasi Keuangan terhadap Perilaku Pengelolaan Keuangan Masyarakat Desa Borowosi Kecamatan Ulunoyo Kabupaten Nias Selatan. Jurnal Ekonomi Bisnis, Manajemen dan Akuntansi (JEBMA), 4(3), 45–53. https://doi.org/10.47709/jebma.v4i3.4583

Oktaviani, W., Wulandari, H. K., & Rahmawati, T. (2023). Pengaruh Literasi Keuangan, Perilaku Keuangan, dan Pengetahuan Investasi terhadap Minat Berinvestasi: Studi Empiris Karyawan Swasta di Kecamatan Wanasari. Jurnal Bina Bangsa Ekonomika, 16(2), 732–749. https://doi.org/10.46306/jbbe.v16i2.437

Prina, S. (2013). Banking the Poor via Savings Accounts: Evidence from a Field Experiment. Journal of Development Economics, 115, 16–31. https://doi.org/10.1016/j.jdeveco.2015.01.004

Putri, L. P., Christiana, I., Pulungan, D. R., & Ardila, I. (2019). Investment literation improvement for preparation of investments for young investors. International Journal of Accounting & Finance in Asia Pasific, 2(3), 32-40.

Roodman, D. (2012). Due Diligence: An Impertinent Inquiry into Microfinance. Center for Global Development. https://ssir.org/articles/entry/microfinance_misses_its_mark

Sarkar, S. (2023). Managing Portfolio for Maximizing Alpha and Minimizing Beta. arXiv preprint arXiv:2304.05900.

Shanbhag, A. (2022). Exploring causes, effects, and solutions to financial illiteracy and exclusion among minority demographic groups. arXiv preprint arXiv:2210.11403. https://arxiv.org/abs/2210.11403

Shefrin, H., & Statman, M. (1985). The disposition to sell winners too early and ride losers too long: Theory and evidence. The Journal of Finance, 40(3), 777–790. https://doi.org/10.1111/j.1540-6261.1985.tb05002.x

Sherraden, M. (1991). Assets and the Poor: A New American Welfare Policy. M.E. Sharpe.

Shrestha, R., & Nursamsu, S. (2020). Financial Inclusion and Savings in Indonesia. In Financial Inclusion (pp. 123–145). Routledge. https://doi.org/10.4324/9781003035916-8

Sudrajat, A. A., & Setiyawan, S. (2022). Pengaruh Literasi Keuangan dan Sikap Keuangan terhadap Perilaku Pengelolaan Keuangan. Jurnal Riset Manajemen dan Bisnis, 2(2), 35–40. https://doi.org/10.29313/jrmb.v2i2.1435

Sutejo, D. A. (2021). Analisis Pengaruh Literasi Keuangan, Inklusi Keuangan, dan Pengelolaan Keuangan terhadap Keputusan Investasi Generasi Milenial di Kota Malang. Jurnal Ilmiah Mahasiswa FEB, 9(1), 1–15. https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7784

Swarjana, I. K. (2022). Populasi-Sampel: Teknik Sampling & Bias dalam Penelitian. Penerbit Andi. 180 hlm. ISBN: 9786230127724.

Tannia, T., Siratan, E., Jeffri, J., Elim, R., & Tutuhatunewa, D. (2023). Pengaruh Literasi Keuangan, Ketertarikan untuk Berinvestasi, Persepsi Risiko, dan Kesadaran Berinvestasi terhadap Keputusan Investasi Masyarakat di Wilayah Timur Indonesia. GLORY Jurnal Ekonomi dan Ilmu Sosial, 4(6), 1501–1512. https://doi.org/10.35508/glory.v4i6.12454

Uddin, M. M. (2019). Determinants of Loan Default of Low-Income Borrowers in Urban Informal Credit Markets: Evidence from Dhaka City. European Journal of Business and Management, 11(26), 88–96. https://doi.org/10.7176/EJBM/11-26-10

Veronica, M. (2023). Peningkatan Literasi Keuangan Masyarakat melalui Pelatihan dan Pendampingan Keuangan di Desa Talang Nangka Kecamatan Lembak, Muara Enim, Sumatera Selatan. Martabe: Jurnal Pengabdian Kepada Masyarakat, 7(3), 768–774. http://dx.doi.org/10.31604/jpm.v7i3.768-774

Wahyuni, A. T., & Iramani, R. (2023). Studi Pengelolaan Keuangan Masyarakat: Peran Literasi dan Pengalaman Keuangan serta Gaya Hidup. Management Studies and Entrepreneurship Journal (MSEJ), 4(4), 4164–4176. https://doi.org/10.37385/msej.v4i5.1676

Wang, Y. (2022). Poverty and Decision-Making: Impact and Mechanism. In Proceedings of the 2021 International Conference on Education, Language and Art (ICELA 2021) (pp. 26–31). Atlantis Press. https://doi.org/10.2991/assehr.k.220131.005

Wardhono, A., Nasir, M. A., Qori'ah, C. G., & Sari, K. I. (2022). Financial Literacy and Inclusion on Consumption in Indonesian Rural Communities. Economics Development Analysis Journal, 11(3), 370–380. https://doi.org/10.15294/edaj.v11i3.55164

Wesslen, R., Karduni, A., Markant, D., & Dou, W. (2021). Effect of uncertainty visualizations on myopic loss aversion and equity premium puzzle in retirement investment decisions. arXiv preprint arXiv:2107.02334.

Wijayanti, R., & Juwita, H. A. J. (2024). The Impact of Behavioral Bias on Stock Investment Performance: Evidence from Generation Z Students at University of Brawijaya. Global Perspectives on Multidisciplinary Research International Proceeding, 1, 131-138.

Xu, L., & Zia, B. (2012). Financial literacy around the world: An overview of the evidence with practical suggestions for the way forward. World Bank Policy Research Working Paper, No. 6107. https://doi.org/10.1596/1813-9450-6107

Yue, P., Korkmaz, A. G., Yin, Z., & Zhou, H. (2022). The rise of digital finance: Financial inclusion or debt trap. arXiv. https://arxiv.org/abs/2201.09221

Yushita, A. N. (2017). Pentingnya literasi keuangan bagi pengelolaan keuangan pribadi. Nominal: barometer riset Akuntansi dan Manajemen, 6(1), 11-26.

Zaiats, V. (2024). Financial Behavior of Households in the Context of Their Resilient Development. Demography and Social Economy, 2024(1), 41–54. https://doi.org/10.15407/dse2024.01.041

Zaman, M. B., Amelia, R. W., & Ludvy, A. (2023). Program Edukasi Literasi Keuangan untuk Masyarakat Berpenghasilan Rendah pada Warga Kelurahan Bedahan, Sawangan, Depok. Jurnal Pengabdian kepada Masyarakat: Kreasi Mahasiswa Manajemen, 4(4), 45–52. https://doi.org/10.32493/kmm.v4i4.46598

Zulkarnain, A., & Satrianto, A. (2023). The Effect of Financial Literacy and Financial Inclusion on Income Inequality in Indonesia. Jurnal Ekonomi Pembangunan, 21(2), 123–135. https://doi.org/10.22219/jep.v21i02.29327

DOI: https://doi.org/10.32535/jicp.v8i1.3950

Refbacks

There are currently no refbacks.

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Published by:

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP

Supported by: Association of International Business & Professional Management

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)

DOI:Prefix 10.32535 by CrossREF

Journal of International Conference Proceedings (JICP) INDEXED: