The Essence of Financial Literacy Understanding In Families (Assistance For Migrant Families)

Abstract

The family plays an important role in financial management, starting from setting short-term, medium-term, and long-term financial goals. With a clear budget, families can also manage expenses, reduce waste, and ensure that basic needs are met. In this case, the family is the primary place to teach financial values to children, starting from instilling the habit of saving, understanding the price of goods, and getting used to managing pocket money. In this case, it is necessary to provide information and strengthen the understanding of financial literacy among migrant workers' families, where migrant workers are individuals who move within or between countries for work purposes. Because there is a need for certainty in achieving work goals, they must have the ability to provide financial literacy within their families, so that the finances they seek while working do not go to waste. This article aims to present the results of community service focused on the importance of conducting financial literacy understanding activities within families, especially familiarizing children with financial literacy from an early age to help them become financially wise individuals in the future. Through a series of community service activities, the implementers explored the main objectives of financial education. The results of the community service show that migrant worker families face various challenges in managing their finances, so through this activity, migrant worker families receive information about the main components of financial literacy. Through a solution-oriented approach, we identified several solutions that can help families manage their finances, including: (1) creating a financial budget; (2) prioritizing needs over wants; (3) having an emergency fund; (4) involving all family members; (5) utilizing technology to assist; (6) reducing consumer debt; (7) regularly saving and investing; (8) conducting periodic financial evaluations; (9) being frugal with non-essential expenses; and (10) wisely utilizing discount information.