An Analysis of the Influence of Income and Financial Literacy on financial Well-Being: A Case Study Construction Workes at CV. Dina Pratama

Bintan Damarani; Budhi Waskito

doi:10.63922/ijevss.v5i03.6282

Bintan Damarani Universitas Bandar Lampung, Indonesia
Budhi Waskito Universitas Bandar Lampung, Indonesia

DOI: https://doi.org/10.63922/ijevss.v5i03.6282

Keywords: Income, Financial Literacy, Financial Well-Being, Construction Workers

Abstract

This study examines the relationship between income and financial literacy and the financial well-being of construction workers at CV. Dina Pratama, both individually and jointly, while also formulating strategies to support improvements in workers’ financial well-being. A quantitative research design was employed with 50 construction workers participating as respondents. The collected data were analyzed using multiple linear regression to determine the effects of the independent variables on financial well-being. The findings demonstrate that income has a positive and significant effect on financial well-being, with a regression coefficient of 0.305 and a significance value of 0.023. Financial literacy also has a positive and significant effect, as indicated by a regression coefficient of 0.472 and a significance value of 0.003. Furthermore, income and financial literacy jointly have a significant effect on financial well-being, as reflected by an F-value of 35.784 and a significance level of 0.000. The R Square value of 0.604 indicates that income and financial literacy collectively account for 60.4% of the variation in financial well-being, while the remaining 39.6% is attributable to other factors outside the research model. Financial literacy demonstrates a relatively stronger contribution than income, as indicated by Standardized Coefficient Beta values of 0.466 and 0.354, respectively. These findings suggest that improving the financial well-being of construction workers should involve strengthening their financial management capabilities, particularly in debt and cash-flow management, while encouraging saving habits and the establishment of emergency funds.

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