Financial Literacy for Housewives in Cikembang Village: Efforts to Avoid the Trap of Moneylender

Abstract

Low financial literacy in rural communities can potentially leave households vulnerable to being trapped in informal lending practices such as mobile banks or emok banks, leading to a prolonged cycle of debt. This phenomenon is also experienced by several housewives in Cikembang Village, West Java. Most housewives in Cikembang Village play a strategic role in family financial management, but they still have limited understanding of financial planning, debt management, and the use of formal financial services. It is not uncommon for some families to experience financial crises due to being trapped in informal debt due to a lack of financial literacy. This community service program aims to improve the financial literacy of housewives as an effort to prevent debt traps and encourage more sustainable family economic management. The implementation method is an educational-participatory model through stages of socialization, training, participatory discussions, and mentoring in preparing household budgets. Evaluation is conducted through pre- and post-tests to measure participants' understanding. The results of the activity indicate an increased understanding of financial planning, debt management, and awareness of the risks of informal loans. In addition, participants demonstrated changes and new awareness in making more rational economic decisions oriented towards family economic sustainability. This program contributes to strengthening household economic capacity and supports efforts to prevent risky debt practices in rural communities.