Vol. 5, No. 9, September 2024
E-ISSN:2723 – 6692
P-ISSN:2723– 6595
http://jiss.publikasiindonesia.id/
Journal of Indonesian Social Sciences, Vol. 5, No. 9, September 2024 2375
The Effect of Financial Literacy, Attitudes Towards Money, and
Financial Pressure on the Financial Well-being of Non-Profit
Organization Workers in Indonesia
Firda Inten Rasyidah, Zaenal Arifin
Universitas Islam Indonesia, Yogyakarta, Indonesia
Email: [email protected], [email protected]
Correspondence: [email protected]
*
KEYWORDS
ABSTRACT
Financial Well-Being, Financial
Literacy, Attitudes Toward
Money, Non-Profit
Organizations;
This study explores the influence of financial literacy, attitudes
towards money, and financial pressures on the financial well-being
of non-profit workers in Indonesia, an issue that is relevant given the
high social activity but lack of attention to the financial well-being of
workers, especially with the majority of them being low-income.
Using the purposive sampling method on 108 respondents from
various regions in Indonesia, the study's findings showed that
financial literacy had a significant positive influence on financial
well-being. In contrast, attitudes towards money had no significant
effect. On the other hand, financial stress significantly negatively
influences the financial well-being of workers of nonprofit
organizations. These results emphasize the importance of efforts to
improve financial literacy and pay attention to financial pressures in
improving the financial well-being of non-profit workers in
Indonesia.
Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)
Introduction
Financial well-being has a very important role in everyone's life. Salignac et al. (2020) define
financial well-being as a stage where a person can spend money on their needs and still have some
money left, manage the budget well, and feel financially secure both now and in the future. Financial
well-being is correlated with academic success, physical well-being, mental well-being, and life
satisfaction (Halvorsen, 2016). Financial well-being can positively impact an individual's overall well-
being (J. M. Lee et al., 2020). Financial well-being and work-life balance are also important in job
satisfaction (Jackson & Fransman, 2018).
Based on the Cigna survey, Indonesia's perception of financial well-being dropped significantly
from 59.1 in 2020 to 53.6 in 2021. This decline is reflected in key financial indicators, such as the
ability to pay Home Ownership Loans (KPR), which decreased from 36 to 24 points, indicating
increased financial strain among Indonesians. Similarly, the ability to cover essential costs like health
and education saw a notable decrease, while the financial capacity to engage in leisure activities, such
as hobbies or family vacations, dropped by 8 points from 26 to 18 (Widhoroso, 2021). This downward
trend in financial well-being aligns with Indonesia's broader socio-economic challenges, as indicated
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by the Central Statistics Agency (BPS), which reported a rise in the poverty rate from 9.78% in 2020
to 10.14% in 2021. These statistics highlight many Indonesians' vulnerabilities, particularly as the
country grapples with economic instability, rising living costs, and limited access to financial
resources. The socio-economic context of Indonesia, characterized by a large informal workforce and
limited social safety nets, exacerbates these challenges, making financial literacy and well-being
critical issues for national development and individual stability (Badan Pusat Statistik, 2022).
Financial well-being can begin with financial literacy. A solid understanding of financial
concepts, such as spending habits (Deventer, 2020), investing (Setyowati et al., 2018), debt
management (J. Lee et al., 2023), and retirement planning (Brounen et al., 2016), equips individuals
with the skills to make informed financial decisions (Deventer, 2020). Previous studies have
established that financial literacy improves well-being by fostering better financial decision-making
(Baker & Ricciardi, 2015; Setyowati et al., 2018). However, most existing research has focused on
general populations or specific groups, such as students or corporate employees, while neglecting
non-profit workers, a sector that faces unique financial challenges. These workers often operate in
environments where financial resources are limited, and compensation is lower than for-profit
sectors, making it harder for them to achieve financial well-being. This study aims to fill this gap by
exploring the impact of financial literacy, attitudes towards money, and financial pressures on the
financial well-being of non-profit workers in Indonesia. By focusing on this overlooked population,
the study provides insights into how financial literacy and other factors contribute to the financial
stability of non-profit workers, a group for which these dynamics are not yet well understood.
A good attitude towards money is also an important factor in financial well-being. Attitudes
toward money shape how individuals manage and utilize their financial resources daily. The wise and
balanced use of money reflects a person's lifestyle (Abdullah et al., 2019). Attitudes towards money
refer to the way individuals view money. Money can be considered an influential tool in managing
personal finances. A person's perception of money will affect how individuals behave when shopping
and trying to save and have an impact on their ability to achieve their set life goals (Sabri et al., 2020).
Youth's attitude towards money can be used to estimate the extent of their financial well-being
(Utkarsh et al., 2020).
Financial pressure also has an important role in achieving financial well-being. French & Vigne
(2019) in its study mention that financial stress refers to anxiety, worry, or feeling of being unable to
cope with situations arising from economic or financial events such as household spending, attitudes
towards debt, and the risk of being over-indebted, insufficient funds to meet basic needs,
psychological impact of unforeseen events, difficulties in borrowing money or limited liquidity, as
well as the influence of restrictions on the use of credit cards and regulations that limit access to
payday loans. Managing financial stress well can lead individuals to achieve financial well-being
(Archuleta et al., 2020).
Based on the World Giving Index issued by the Charities Aid Foundation (2022), Indonesia
ranks first as the most generous country compared to other countries. Based on the existing criteria,
Indonesia ranks first in donating money (84%) and volunteer time (63%). The magnitude of the level
of generosity of Indonesia citizens is due to the culture of cooperation, the obligation to pay zakat for
Muslims, of which there are 231 million Muslims in Indonesia, and also the younger generation who
have a high interest in carrying out social activities by developing digital donation platforms
(Algamar, 2022). This has led to the proliferation of non-profit organizations with social goals in
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Indonesia. There are 1,648 non-governmental organizations (SMERU, 2023) and 512,997 community
organizations (Kemendagri, 2022) as well as many other non-profit institutions such as community
organizations, non-governmental organizations (NGOs), associations, associations, foundations, and
political parties (Central Statistics Agency, 2022).
Even though it is called a non-profit organization, the institution still has resources that are
employed either as full-time employees (Slatten et al., 2021), part-time employees (Naim, 2018), or
volunteers (Soelton et al., 2021). Each non-profit institution has its employee capacity. Starting from
(1) unincorporated non-profit organizations i.e. organizations that receive less than $5000 in annual
revenue and have no paid staff, (2) micro-non-profit organizations have an annual budget of less than
$100,000 and 1–2 permanent employees, (3) small non-profit organizations generally receive annual
receipts of $100,000–$250,000 with 3–10 permanent employees, (4) medium-sized non-profit
organizations with annual budgets between $250,000–$500,000 with a maximum of 50 employees,
and (5) large non-profit organizations with budgets between $500,000—more than $1 million with
50+ employees (Slatten et al., 2021). Workers at this non-profit institution receive incentives in both
financial and non-financial forms (Michael, 2018) as a form of commitment from both parties.
Some employees are willing to work for lower wages at a non-profit organization if the agency
produces a positive social outlook (Preston, 1989). This aligns with the institution's limited
operational funds for wage allocation and is more focused on financing programs (Slatten et al., 2021).
Under such conditions, workers of non-profit institutions need to manage their finances to achieve
stability and financial well-being. When workers in non-profit organizations achieve stability and
financial well-being, it is not only workers who benefit from it but also the organizations they
contribute to and the communities they serve.
However, in-depth research on workers' financial well-being in non-profit institutions is
limited, especially in Indonesia. Most of the literature focuses on consumer financial behavior as the
main factor affecting financial well-being (Castro-González et al., 2020). In the context of this thesis,
the aspects that affect financial well-being will be examined to improve the financial well-being of
workers in the non-profit sector and positively impact the organization's goals.
Sabri and Zakaria (2015) revealed in their study that financial literacy, attitudes toward money,
financial pressure, and financial ability positively influence the financial well-being of young workers.
This topic is interesting to study further, especially in the context of nonprofit workers. Non-profit
organization workers as the object of research became a reforming aspect of the previous research.
This study will examine the influence of financial literacy, attitudes toward money, and financial
pressure on workers' financial well-being in non-profit institutions. Not many people have discussed
this aspect in the context of non-profit organizations, so this research is expected to provide valuable
insights in efforts to improve the financial well-being of non-profit workers in Indonesia.
Based on the background and formulation of the problems raised, this study aims to describe
the influence of financial literacy, attitudes towards money, and financial pressure on the financial
well-being of workers of non-profit organizations in Indonesia. Explain the influence of financial
literacy, attitudes towards money, and financial pressure on the financial well-being of non-profit
workers in Indonesia.
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Materials and Methods
Population and Sample
The population of this study is workers of non-profit organizations in Indonesia. According to
BPS (2023), the total number of Indonesia workers in 2022 is 135,296,713 residents; this number is
94.14% of the total population of Indonesia's labor force. Thus, the total population is 135,296,713
inhabitants.
The sampling method in this study is purposive sampling. Purposive sampling is a technique
for determining research samples that considers certain aspects so that the data obtained can later
describe the research results.
Data Collection Methods
In this study, data was taken using primary sources. Primary data was obtained by data
collection techniques in the form of questionnaires. The questionnaire contains a list of statements
used to gather the necessary information from the respondents. All responses given by respondents
to the statements in the questionnaire were processed for data analysis purposes. The primary data
collection method is carried out by distributing questionnaires through the Google Form platform to
respondents who have been selected based on predetermined criteria.
This study uses the Likert Scale method to measure questionnaire results. The Likert Scale is a
scale used to measure the perception, attitude or opinion of a person or group regarding a social event
or phenomenon. There are two forms of questions on the Likert scale, namely the form of positive
questions to measure the positive scale and the form of negative questions to measure the negative
scale. Positive questions were scored 6, 5, 4, 3, 2, and 1, while negative questions were scored 1, 2, 3,
4, 5, and 6.
Variable Operational Definition
The operational definition of variables is the limitations and methods of measuring the
variables to be studied. This study's operational definitions of variables are financial well-being,
financial literacy, attitudes toward money, and financial pressure.
Instrument Test Methods
The instrument test method uses a validity test and reliability test.
Hypothesis Testing Methods
The hypothesis testing method uses classical assumption testing, normality testing,
Multicollinearity Testing, and Heteroscedasticity testing. Meanwhile, hypothesis testing uses the T
Statistical Test, F Statistical Test, Determination Coefficient Test (R²), and Difference Test.
Results and Discussions
Instrument Test Results
Validity Test
The validity test of the instrument in this study was carried out with the SPSS version 25
program. The test looked at the corrected item-total correlation (r calculated) value and the
significance of each question item. The following are the results of the validity test of the instrument
in this study.
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Table 1 Validity Test Results
Variable
Grain
Sig.
Calculat
e
R Calculate
R Table
Conclusion
Financial Well-
Being
KK1
0.025
0.698
0.632
Valid
KK2
0.010
0.768
0.632
Valid
KK3
0.001
0.868
0.632
Valid
KK4
0.030
0.681
0.632
Valid
KK5
0.008
0.78
0.632
Valid
KK6
0.421
0.287
0.632
Invalid
KK7
0.002
0.843
0.632
Valid
KK8
0.006
0.798
0.632
Valid
KK9
0.013
0.746
0.632
Valid
KK10
0.283
0.376
0.632
Invalid
KK11
0.537
0.222
0.632
Invalid
KK12
0.036
0.666
0.632
Valid
KK13
0.013
0.746
0.632
Valid
KK14
0.008
0.778
0.632
Valid
KK15
0.006
0.793
0.632
Valid
KK16
0.008
0.778
0.632
Valid
Financial
Literacy
PAGE 17
0.016
0.733
0.632
Valid
PAGE 18
0.052
0.627
0.632
Invalid
P19
0.183
0.457
0.632
Invalid
PAGE 20
0.095
0.556
0.632
Invalid
PAGE 21
0.006
0.794
0.632
Valid
PAGE 22
0.044
0.644
0.632
Valid
PAGE 23
0.118
0.526
0.632
Invalid
P24
0.015
0.737
0.632
Valid
PAGE 25
0.868
0.06
0.632
Invalid
PAGE 26
0.032
0.677
0.632
Valid
PAGE 27
0.030
0.683
0.632
Valid
PAGE 28
0.015
0.736
0.632
Valid
Attitude
towards Money
SU29
0.945
0.025
0.632
Invalid
SU30
0.036
0.664
0.632
Valid
SU31
0.047
0.638
0.632
Valid
SU32
0.046
0.64
0.632
Valid
SU33
0.046
0.64
0.632
Valid
SU34
0.005
0.802
0.632
Valid
SU35
0.007
0.79
0.632
Valid
SU36
0.004
0.819
0.632
Valid
SU37
0.001
0.864
0.632
Valid
SU38
0.012
0.753
0.632
Valid
SU39
0.003
0.822
0.632
Valid
SU40
0.667
0.155
0.632
Invalid
Financial Stress
TK41
0.032
0.676
0.632
Valid
TK42
0.000
0.911
0.632
Valid
TK43
0.000
1
0.632
Valid
TK44
0.027
0.691
0.632
Valid
TK45
0.016
0.732
0.632
Valid
TK46
0.024
0.7
0.632
Valid
TK47
0.009
0.768
0.632
Valid
TK48
0.009
0.773
0.632
Valid
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TK49
0.000
1
0.632
Valid
Source: Data processed (2024)
In this test, the statement item is declared valid if the calculated r value is significant and
exceeds the table r value. Based on the r table, the r value of the table for a test sample of 10
respondents (α = 5%) is 0.632, so in this test, the question item is declared valid if the r calculation is
significant and the value exceeds 0.632. Table 1 shows that out of 49 items of statements, there are
10 invalid items and 39 valid items. These 10 items need to be eliminated, and the other 39 items can
be used to measure financial well-being, financial literacy, attitudes towards money, and financial
pressure.
Reliability Test
The reliability test used is Cronbach's Alpha reliability test, where the instrument is said to be
reliable if the value of Cronbach's alpha > r table is high. The results of the reliability test of each
variable can be seen in the following table.
Table 2 Reliability Test Results
Variable
Grain
Cronbach's
Alpha
R Table
Conclusion
Financial Well-
Being
KK1
0.843
0.632
Reliable
KK2
0.844
0.632
Reliable
KK3
0.854
0.632
Reliable
KK4
0.853
0.632
Reliable
KK5
0.850
0.632
Reliable
KK6
0.847
0.632
Reliable
KK7
0.836
0.632
Reliable
KK8
0.828
0.632
Reliable
KK9
0.832
0.632
Reliable
KK10
0.840
0.632
Reliable
KK11
0.847
0.632
Reliable
KK12
0.851
0.632
Reliable
KK13
0.836
0.632
Reliable
KK14
0.836
0.632
Reliable
KK15
0.836
0.632
Reliable
KK16
0.850
0.632
Reliable
Financial Literacy
PAGE 17
0.846
0.632
Reliable
PAGE 18
0.844
0.632
Reliable
P19
0.837
0.632
Reliable
PAGE 20
0.845
0.632
Reliable
PAGE 21
0.851
0.632
Reliable
PAGE 22
0.841
0.632
Reliable
PAGE 23
0.839
0.632
Reliable
P24
0.845
0.632
Reliable
PAGE 25
0.839
0.632
Reliable
PAGE 26
0.840
0.632
Reliable
PAGE 27
0.844
0.632
Reliable
PAGE 28
0.839
0.632
Reliable
Attitude towards
Money
SU29
0.843
0.632
Reliable
SU30
0.848
0.632
Reliable
SU31
0.837
0.632
Reliable
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SU32
0.848
0.632
Reliable
SU33
0.846
0.632
Reliable
SU34
0.844
0.632
Reliable
SU35
0.839
0.632
Reliable
SU36
0.833
0.632
Reliable
SU37
0.838
0.632
Reliable
SU38
0.832
0.632
Reliable
SU39
0.835
0.632
Reliable
SU40
0.842
0.632
Reliable
Financial Stress
TK41
0.843
0.632
Reliable
TK42
0.849
0.632
Reliable
TK43
0.838
0.632
Reliable
TK44
0.845
0.632
Reliable
TK45
0.846
0.632
Reliable
TK46
0.847
0.632
Reliable
TK47
0.840
0.632
Reliable
TK48
0.838
0.632
Reliable
TK49
0.831
0.632
Reliable
Source: Data processed (2024)
The r table's r value for a test sample of 10 respondents (α = 5%) is 0.632. So, in this test, the
question item is declared reliable if the calculated value exceeds 0.632. Table 2, shows that all
statements have reliable results out of 49 statement items. Thus, all items can be used to measure
variables of financial well-being, financial literacy, attitudes toward money, and financial pressure.
Results of the Classic Assumption Test
Normality Test Results
The normality test checks whether the residual variables in the regression model follow the
normal distribution. This study used the Kolmogorov-Smirnov test method to conduct the normality
test. The data from the normality test results are as follows.
Table 3 Normality Test Results
Unstandardized
Residual
Significance
Conclusion
N
118
Normal
Parameters
Mean
0.0000000
Std.
Deviation
7.91630773
Most Extreme
Differences
Absolute
0.077
Positive
0.037
Negative
-0.077
Test Statistic
0.077
Asymp. Sig. (2-tailed)
0.085
0.05
Normally Distributed
Source: Data processed (2024)
Based on the table above, the normality test result has a value of 0.085, which is greater than
the significance value of 0.05. Therefore, it can be concluded that the data is normally distributed and
can be used for further analysis.
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Multicollinearity Test Results
Data that has the nature of multicollinearity can lead to deviations in the direction of the
relationship between independent variables and dependent variables which means that the expected
effect of a variable can change otherwise. The following is the data from the multicollinearity test in
this study.
Table 4 Multicollinearity Test Results
Collinearity
Statistics
Standard
Tolerance
VIF
Standard
Tolerance Results
VIF Results
Tolerance
BRIG
HT
Financial
Literacy
0.983
1.017
0.1
10
No Multicollinearity
No Multicollinearity
Attitude
towards
money
0.756
1.323
0.1
10
No Multicollinearity
No Multicollinearity
Financial
Stress
0.752
1.329
0.1
10
No Multicollinearity
No Multicollinearity
Dependent variable: Financial well-being
Source: Data processed (2024)
Based on the table above, the results of the multicollinearity test show that the tolerance value
of the three independent variables is greater than 0.1, namely 0.983 for financial literacy, 0.756 for
attitude towards money, and 0.752 for financial pressure. Likewise, the results of the VIF of the three
independent variables with a value of less than 10 were 1,017 for financial literacy, 1,323 for attitudes
toward money, and 1,329 for financial pressure. So, the data in this study passed the multicollinearity
test based on these two criteria.
Heteroscedasticity Test Results
The heteroscedasticity test is used to determine whether the residual variance of a regression
model remains constant. In this study, the heteroscedasticity test uses the glacier test. The following
is the data from the heteroscedasticity test in this study.
Table 5 heteroscedasticity Test Results
Unstandardized
Coefficients
Standardized
Coefficients
t
Mr.
Signific
ance
Conclusion
B
Std.
Error
Beta
(Constant)
2.637
3.484
0.757
0.451
0.05
No Heteroscedasticity
Financial
Literacy
0.049
0.067
0.068
0.730
0.467
0.05
No Heteroscedasticity
Attitude
towards
Money
0.009
0.085
0.011
0.103
0.918
0.05
No Heteroscedasticity
Financial
Stress
0.098
0.058
0.179
1.694
0.093
0.05
No Heteroscedasticity
Dependent variable: Financial well-being
Source: Data processed (2024)
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The table above shows that the significance value between the independent variable and the
absolute residual is greater than 0.05. Thus, this study's data show no heteroscedasticity problem.
Hypothesis Test Results
Assuming a normal distribution and homoscedasticity (equal variance between groups), the t-
test was performed to determine the significance of the influence of independent factors on the
dependent variables. The following is the data on the t-test results in this study.
Table 6 Test Results
Unstandardized
Coefficients
Standardized
Coefficients
T
Mr.
Conclusion
B
Std.
Error
Beta
(Constant)
39,105
6,351
6,157
0,000
Financial
Literacy
0,745
0,124
0,445
6,002
0,000
Positive influence
Attitude
towards
Money
0,148
0,163
0,080
0,905
0,367
No positive effect
Financial
Stress
-0,593
0,105
-0,469
-5,651
0,000
Negative
influence
Source: Data processed (2024)
The results in the table above show that the financial literacy and financial stress variables have
a significance value of more than 0.05 (α=5%), which is 0.000, so that financial literacy and stress
have a partial effect on the dependent variable, namely financial well-being. The coefficient value of
0.745 indicates the result corresponding to H1 and -0.593 to H3. So, H1 and H3 are accepted.
Meanwhile, in the attitude variable towards money, the significance value is less than 0.05, which is
0.367, and the coefficient value shows a positive result of 0.148. So, H2 was rejected.
The F test in this study was used to evaluate the influence of all independent variable models
simultaneously on the dependent variables. The following criteria were used to accept or reject the
null hypothesis and formulate conclusions. The following is the data on the results of the F test in this
study.
Table 7 Results of F Test and R² Test
Sum of
Squares
Df
Mean
Square
F
Mr.
Adjusted R
Square
Conclusion
Regression
5441.597
5
1088.319
16.632
0.000
0.400
Influential
Residual
7328.878
112
65.436
Source: Data processed (2024)
Based on the table above, it can be seen that the significance value is 0.000. The provision in the
F test is that if the significance value of F < 0.05, then the null hypothesis () is rejected and shows that
the independent variable has a significant influence simultaneously on the dependent variable. This
means that financial literacy, attitudes toward money, and financial pressure simultaneously affect
the financial well-being of non-profit workers in Indonesia.𝐻
0
The determination coefficient test was carried out to measure how much influence independent
variables exert jointly or simultaneously on dependent variables. Based on the table above, it can be
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seen that the R² result in this study is 0.400. The R-squared value is closer to 1, which means that the
model is better at explaining variations in the data. This means that the relationship between variable
X and variable Y is getting stronger. The R² value of 0.400 shows a simultaneous influence between
financial literacy, attitudes towards money, and financial pressure on financial well-being by 0.400 or
40% while other variables influence 60%.
Discussion
The Effect of Financial Literacy on Financial Well-Being
In this study, financial literacy is proven to affect financial well-being empirically and positively.
Financial literacy gives a person a good understanding of financial products, concepts, and risks to
improve the individual's ability to make the right financial decisions. This is also supported by
respondents' income data, which low-income individuals dominate. However, individuals can make
wiser decisions with a good understanding of financial products, concepts, and risks. The right
financial decisions lead individuals to achieve financial well-being. As hypothesized in this study, the
higher a person's literacy level, the higher financial well-being can be achieved.
The results of this study are also in line with the research of Philippas and Avdoulas (2020),
who stated that financial literacy can be a key factor in improving financial well-being among students
in Greece. In addition, Younas et al. (2019) also examined the ability to control themselves and
financial literacy, which can affect financial well-being through financial behavior.
The Effect of Attitudes on Money on Financial Well-Being
Attitudes towards money do not affect financial well-being. This means proving that the
hypothesis in this study is not proven. When a person has a positive attitude towards money, it does
not necessarily achieve high welfare. Moreover, vice versa, when a person has a negative attitude
towards money, it does not mean they do not achieve financial well-being, especially in the short term.
Silva and Dias's (2023) research found that attitudes towards money do not significantly affect
financial well-being through financial satisfaction. In this Silva & Dias study, respondents are low-
income Portuguese citizens with an average level of happiness who can achieve financial satisfaction
and well-being. Low—and middle-income people also dominated the characteristics of the
respondents in this study. This can be a characteristic that is indeed found in low-income
respondents.
On the other hand, Sesini and Lozza, (2023) research states that people with lower incomes
tend to have a different perception of the importance of money compared to individuals from higher
social classes. Some people with lower incomes may find money very important, while others may
find it less important than people from higher social classes. This statement suggests that there are
differences in views and attitudes towards money among individuals from lower income groups, and
this study's results have not shown a consistent pattern. This opens up opportunities for further
research to understand what factors affect the importance of money for individuals with different
income levels.
Stumm et al. (2013) One reason for the inconsistency of the research results on attitudes
toward money is that, in principle, attitudes refer to a person's feelings, opinions, and general
approach to a particular person or object. In contrast to personality, attitudes are often influenced by
situational and circumstantial factors, so it is believed that attitudes tend to be less stable compared
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to personality traits. As the results of this study, non-profit workers tend to have a positive attitude
toward money, namely not obsessing over money, diligently saving, feeling satisfied with the money
they have, and working hard to make money in the current situation and conditions. However, these
results can change in different situations and conditions.
Sesini and Lozza, (2023) present two other reasons reinforcing this inconsistency. First, it is
related to methodological and social motives. In the methodological aspect, there are limitations
between the scales used. In addition, the complexity of the construction of money is filled with
powerful and diverse symbolic loads, making it difficult to investigate and interpret.
Second, regarding social, cultural, economic, and historical factors, only 8% of the study by
Sesini and Lozza, (2023) involved a cross-cultural perspective. The study provides more consistent
results that show a tendency in poorer countries to display a greater interest in money compared to
wealthier societies. On the other hand, people from different parts of the world likely value money
differently. Thus, cultural differences and macroeconomic variables may cause such inconsistent
results.
Based on this explanation, although this study produces a positive attitude towards money, it
does not necessarily significantly affect the financial welfare of non-profit organization workers.
The Effect of Financial Stress on Financial Well-Being
Financial stress has been shown to affect financial well-being negatively. In this study, financial
stress is characterized by difficulty meeting needs, anxiety with financial conditions, and physical
and/or psychological disorders due to financial conditions with low outcomes. When a person
experiences financial stress, the person is having a financial problem that needs a solution to get out
of the problem. Meanwhile, financial pressure can make individuals less wise in decisions beyond
financial well-being. As hypothesized in this study, financial pressure hurts financial well-being.
When financial pressure is lower, a person's well-being will be higher.
This is in line with the research of Nykiforuk et al. (2023), which explains how various factors
that are the root cause and impact of financial stress and poor financial well-being are interconnected.
The study of Sabri and Zakaria (2015) also shows a strong correlation between the level of financial
well-being and the level of financial stress. Demographic characteristic factors (such as gender and
monthly household income) also significantly affect a person's level of financial well-being. However,
the most dominant among these factors is financial pressure, which is the main contributor to a
person's level of financial well-being.
Income, Marital Status, Domicile, and Gender on Financial Well-Being
This research produces moderate and high welfare. 35% of respondents are dominated by
those with low incomes, namely those below Rp 2,000,000. Of these figures, 70.73% achieved
moderate financial welfare, and 29.27% achieved high financial welfare. No one even experienced a
low level of welfare. This unique research result is due to their limited needs. This is a phenomenon
in low-income communities where their needs are not met. Dietary needs are only for basic foods.
The need for shelter can be represented by the availability of shelter that can protect them adequately.
The need for education can be realized with public school education facilities provided by the
government.
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As stated by Supriyanto (2020), low-income families have limited needs because they are still
focused on fulfilling food consumption only. This is seen from the average food consumption, which
is higher than non-food consumption. With the increase in income, expenditure on food consumption
(consisting of rice, tubers, fish, eggs, meat, milk, vegetables, fruits, oils, beverages, and kitchen spices)
should be met so that people can allocate income for other needs besides food (household facilities,
education costs, and health costs).
Of the 42 people with an income below Rp 2,000,000 or 58.54%, they answered that they could
meet their needs for the next 1 year. The needs in question may only be basic without considering
each need's quality.
In addition, the results are also due to respondents who are dominated by unmarried people
(54%), so their needs are not more complex than those who are married. However, the study does
not go further into what and how much their dependents are, such as whether they only support
themselves or become the family's breadwinner even though they are unmarried. This study also did
not find out the economic background of the respondents' parents. This condition could affect the
level of welfare of respondents. For those with enough parents, getting a small income is not a
problem, because they still receive financial support and facilities from their parents.
Meanwhile, respondents who are married and have an income of less than Rp 2,000,000 are
indeed filled by women who, in meeting their needs, may get financial assistance from their spouses.
Other conditions, such as income being only used to meet the needs of the wife, while the needs of the
household that the husband has met can also occur.
If examined further, respondents with incomes below Rp 2,000,000 are also dominated by
63.41% by those who live in the Yogyakarta and Central Java areas. Where the Yogyakarta Provincial
Minimum Wage (UMP) is IDR 1,981,782 (BPS, 2023) and the Central Java UMP is IDR 1,958,269
(Arnani, 2022). Meanwhile, respondents domiciled in Greater Jakarta were dominated by 32.65% by
those with an income of Rp 3,500,000 – Rp 5,500,000. This aligns with data from BPS (2023) that the
DKI Jakarta UMP in 2023 is IDR 4,901,798.
Financial well-being is also not spared from religious, social, cultural, and adhered values.
Employees of non-profit organizations have a high social spirit. Work is not only based on the
remuneration obtained but also on inner satisfaction when doing social activities. In addition to using
their time on social activities, it is also not difficult for non-profit workers to donate money.
Dittrich and Mey (2021) found that alumni who volunteered for their college while in college
donated significantly more money than non-volunteer alumni. The study also stated volunteer work
as an indicator of philanthropic appetite, reporting a positive relationship between giving time and
money. This means that people who tend to give their time to volunteer work are also more likely to
make monetary donations. In other words, those who behave philanthropically in one form (e.g.,
voluntarily) also tend to behave philanthropically in another (e.g., monetary donations).
Based on this, no matter how much income is generated, there is still a budget to share. Even
when income increases, the funds for sharing also increase.
Conclusion
Based on the results and discussion, this study reveals that financial literacy has a significant
and positive impact on the financial well-being of non-profit workers in Indonesia, indicating that
individuals with a better understanding of financial concepts are more likely to experience higher
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levels of financial well-being. This underscores the critical role of financial literacy in enhancing the
financial stability of individuals, particularly in the non-profit sector. However, the study also found
that attitudes towards money did not significantly influence financial well-being, suggesting that
other factors may have a stronger effect in this context. Additionally, financial stress was shown to
have a negative and significant impact on financial well-being, highlighting the disruptive nature of
financial pressure on decision-making and stability. Therefore, managing financial stress is a crucial
element in improving the financial well-being of non-profit workers in Indonesia.
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