Financial literacy of elementary school students: Understanding the concept of money and financial planning

Abstract

This study aims to evaluate the financial literacy skills of sixth-grade elementary school students, specifically in the areas of understanding the concept of money, financial planning, and distinguishing between needs and wants. Using a descriptive quantitative method with an ex post facto approach, this research involved 30 students from a public elementary school in Bandung. Data were collected through a multiple-choice test designed to measure students' financial literacy across six key indicators. The results indicate that the average financial literacy of students falls into the low category, with an average score of 56%. The highest-scoring indicator was the ability to distinguish between needs and wants (93%), while the lowest-scoring indicator was awareness of the importance of financial planning (4%). These findings suggest that financial literacy among students needs to be improved, particularly in the area of financial planning. The study is expected to serve as a foundation for the development of financial literacy programs in elementary schools, aimed at enhancing students' financial awareness and skills from an early age.