Financial Literacy, Debt And Its Benefits In Household Life

This study examines the effect of financial literacy on debt and its benefits in household life (study of households in Pekanbaru City, Riau, Indonesia), research design is survey research with purposive sampling technique obtained by 302 respondents, while the analytical tool used is multiple regression. From the results of this study we found a strong correlation between financial literacy and household debt of 0.96 or 96%. While the value of R-squared of 0.92, which means household debt can be explained by the financial literacy of 92% while the rest can be explained by other factors not examined in this study. Descriptively in this research found three dominant factor of someone be in debt : a) financial literacy itself that is ability to manage money and debt, b) unexpected, urgent needs, c) relatively small monthly income