Empowering Rural Families through Financial Literacy: Lessons from Srigonco Village
Financial literacy is more than just understanding money. Often it’s about making smart decisions that can change lives. In rural Indonesia, where access to formal financial institutions is limited, families often rely on informal loans and face challenges in managing their daily expenses.
Financial literacy matters as families often have low awareness about budgeting, saving, or borrowing responsibly that leads to poor decisions and debt traps.
The project, led by researchers from Universitas Negeri Malang, was designed to improve people’s understanding of everyday financial management and build their confidence in making sound economic decisions.
The initiative aligns with Indonesia’s broader efforts to promote economic inclusion and rural development, ensuring that financial education reaches even the most remote communities.
The programme was carried out through a participatory, community-based approach, meaning the villagers were not just learners but active participants. The research team organised interactive workshops and discussions, introducing topics such as how to manage household budgets and prioritise expenses, the importance of saving and planning for emergencies, and responsible borrowing.
Participants were encouraged to share their own experiences with financial decisions in their families including debt and unexpected expenses, which made the discussions relatable and grounded in everyday realities.
One of the most encouraging outcomes was the rise of community awareness. Families started to talk more openly about managing money, sharing what they learned with others. This collective effort helped create a supportive environment where financial management became a shared goal rather than an individual challenge.
The success of the Srigonco Village programme carries important lessons for rural development strategies. Some of them are integrate financial education into existing village empowerment initiatives, encourage collaboration between local governments, schools, and banks to make training sustainable, and use digital platforms to reach wider audiences, especially young people.
By embedding financial literacy into community development, villages can become more resilient to economic shocks and less dependent on informal debt systems.
Finally, empowering rural families through financial education can create long-term positive impacts: lower poverty, greater savings, and stronger communities. With continued collaboration between educators, policymakers, and local leaders, initiatives like this can be replicated in other areas, helping more families achieve financial stability and independence (TS).
