Financial Planning for Financial Freedom

Financial literacy is an individual's ability to understand and use various financial skills, including budget planning, debt management, savings, investments, and understanding financial products and services. These skills are essential for making wise financial decisions and achieving financial well-being. Financial literacy benefits include improved financial management. Individuals with a high level of financial literacy tend to have better skills in budget planning, savings, and debt management, contributing to personal and family financial stability. Furthermore, financial literacy also supports government efforts to increase financial inclusion, enabling individuals to access and utilize formal financial services, such as bank accounts, insurance, and other investment products. Sixty percents of Indonesian migrant workers in Malaysia have low financial literacy, making them difficult to manage and plan their personal finances, understand financial products, and make financial and investment decisions. This, in turn, impacts financial stability (managing personal income and expenses) and the potential risk of future financial difficulties. Meanwhile, the availability of training on personal financial management to improve the financial literacy of migrant workers remains very limited, preventing this problem from being addressed immediately. After the training, 80% of participants agreed that the material provided was high-quality and useful, and 85% strongly agreed that they were overall satisfied and benefited from the financial literacy training provided by the trainer.