An Analysis of Financial Literacy and Household Saving among Fishermen in Indonesia

Abstract

Financial literacy literatures suggested that people in many countries were financially illiterate. Even though financial literacy had quoted mostly in many research, this concept rarely examined on the population group of fishermen. The purpose of this study was to examine their personal financial literacy and the relationship between the financial literacy and household saving. The data for this study were gathered during January-June 2014 through questionnaires, conveniently distributed to a population group of fishermen in the age of 25 to 50 years old in Regency of Brebes, Tegal and Pekalongan, Central Java, Indonesia. Variables used in this study were financial literate and household saving. Results from 258 samples confirm that financial literacy was positively related to household saving. Eighty five percent of fishermen were illiterate and most of them had no saving account. We also find that financial inclusion played a crucial role to fishermen in saving their money. The results of this study suggested for policy makers to increase financial literacy of fishermen by implementing various financial education programs and financial inclusion by adding geographic penetration of banks and credit availability.

DOI: 10.5901/mjss.2015.v6n5s5p216