THE ROLE OF FINANCIAL LITERACY IN EFFORTS TO IMPROVE THE ECONOMY OF THE KUDANGWANGI VILLAGE COMMUNITY, SUMEDANG REGENCY

Abstract

This study aims to improve the economy of rural communities through financial literacy. Kudangwangi Village, Ujungjaya District, located in Sumedang Regency, is one of the villages with great economic potential, especially in the agriculture, livestock, and micro, small and medium enterprises (MSMEs) sectors. However, like many other villages in Indonesia, the people of Kudangwangi Village face challenges in improving their economic level. One of the main challenges is the low level of financial literacy, which results in difficulties in managing household and business finances. Financial literacy refers to the knowledge, skills, attitudes, and behaviors needed to make informed and effective financial decisions. By improving financial literacy in the community, individuals are empowered to make informed financial decisions that can have a positive impact on their economic development. Financial literacy plays an important role in improving the economic development of the community. With financial literacy, individuals are equipped with the knowledge and skills to manage their personal finances effectively. Overall, this study shows that financial literacy plays an important role in helping the people of Kudangwangi Village to better manage their finances, access wider financial resources, and improve economic welfare.