SUSTAINABLE DEVELOPMENT THROUGH THE ROLE OF FINANCIAL LITERACY IN MEDIATING FACTORS AFFECTING FINANCIAL PLANNING FOR MARRIAGE

Abstract

The United Nations has developed 17 goals and 169 targets for the Sustainable Development Goals (SDGs), which serve as a global action plan for the next 15 years (from 2016 to 2030). Poverty is one of the government's main targets in the SDGs. Government intervention is needed to overcome poverty. A prosperous household has a positive impact on its members and the wider community. Marriage is the main gate of household formation, therefore financial planning and goals for marriage determine what kind of family economic welfare is built. This study integrates the theory of planned behavior as the main theory and institutional theory to expand the research implications. This study aims to examine financial literacy interventions on attitude towards money, attitude towards debt, financial goals and social influence on financial planning for marriage for couples who are getting married and/or already married at the Sleman Regional Religious Affairs Office (RAO), Indonesia. This study uses a quantitative approach using Structural Equation Modeling - Partial Least Squares (SEM-PLS) as the main analysis tool. The results of this study indicate a positive effect of attitude towards money, financial goals and financial literacy on financial planning for marriage. Financial literacy mediates between attitude towards money, attitude towards debt, financial literacy on financial planning for marriage. Based on these results, couples who are getting married are expected to have a good financial understanding which is further supported by good financial planning and management. To get broader implications, the government can strengthen cooperation between institutions to be able to create financial literacy counseling programs from upstream brides so that the families built have a solid financial foundation.