The Role of Financial Literacy and Family Resources to Improve Community Welfare in the Mandalika Lombok Tourism Area

I Putu Agus Santana¹, & I Gde Wedana Arjawa^2*
¹Faculty of Economics, Universitas Islam Al Azhar, Mataram, Lombok, Indonesia
²Faculty of Economics and Business, Universitas Warmadewa, Bali, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2025.81036

Abstract

This study aims to analyze the role of financial literacy and family resources in improving the welfare of the community in the Mandalika Tourism Area, Lombok. This study uses a quantitative approach with an explanatory research method to test the causal relationship between variables. A total of 160 respondents who work as small business actors, tourism service workers, homestay owners, and local traders were used as research samples using the proportionate stratified random sampling technique. Data were collected through surveys and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results of the study show that financial literacy has a positive and significant effect on people’s welfare, which is reflected in people’s ability to manage income, save, and invest wisely. Meanwhile, family resources have a stronger influence on welfare, through the optimization of economic, social, and human potential in the household. This research provides important implications for policies to strengthen financial literacy capacity and family empowerment as an inclusive economic development strategy in sustainable tourism areas such as Mandalika.

Keywords: financial literacy, family resources, community welfare, sustainable tourism, Mandalika Lombok

References

Bai, R. (2023). Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making. PLOS ONE, 18(11), e0294466.
Cogan, A., Pret, T., & Cardon, M. S. (2022). Everyday social support processes: Household members’ instrumental and emotional support of entrepreneurs. International Small Business Journal: Researching Entrepreneurship, 40(5), 537–563. https://doi.org/10.1177/02662426211054098
Dako-Gyeke, M., Abekah-Carter, K., Hervie, V. M., & Boateng, D. A. (2022). Delivering Financial Capability and Asset Building Curriculum: Strengthening the Competencies of Social Work Faculty. Global Social Welfare, 10(1), 61–69. https://doi.org/10.1007/s40609-022-00247-6
Dickinson, H., Smith, C., Yates, S., & Tani, M. (2023). The importance of social supports in education: survey findings from students with disability and their families during COVID-19. Disability & Society, 38(8), 1304–1326. https://doi.org/10.1080/09687599.2021.1994371
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
Freak-Poli, R., Kung, C. S. J., Ryan, J., & Shields, M. A. (2022). Social Isolation, Social Support, and Loneliness Profiles Before and After Spousal Death and the Buffering Role of Financial Resources. The Journals of Gerontology: Series B, 77(5), 956–971. https://doi.org/10.1093/geronb/gbac039
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2017). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hsiao, W. C., & Yip, W. (2024). Financing and provision of healthcare for two billion people in low-income nations: Is the cooperative healthcare model a solution? Social Science & Medicine, 345, 115730. https://doi.org/10.1016/j.socscimed.2023.115730
Katnic, I., Katnic, M., Orlandic, M., Radunovic, M., & Mugosa, I. (2024). Understanding the Role of Financial Literacy in Enhancing Economic Stability and Resilience in Montenegro: A Data-Driven Approach. Sustainability, 16(24), 11065. https://doi.org/10.3390/su162411065
Korsunova, A., Halme, M., Kourula, A., Levänen, J., & Lima-Toivanen, M. (2022). Necessity-driven circular economy in low-income contexts: How informal sector practices retain value for circularity. Global Environmental Change, 76, 102573. https://doi.org/10.1016/j.gloenvcha.2022.102573
Kumar, P., Islam, M. A., Pillai, R., & Sharif, T. (2023). Analysing the behavioural, psychological, and demographic determinants of financial decision making of household investors. Heliyon, 9(2), e13085. https://doi.org/10.1016/j.heliyon.2023.e13085
Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183. https://doi.org/10.1016/j.bir.2022.09.012
Sajid, M., Mushtaq, R., Murtaza, G., Yahiaoui, D., & Pereira, V. (2024). Financial literacy, confidence and well-being: The mediating role of financial behavior. Journal of Business Research, 182, 114791. https://doi.org/10.1016/j.jbusres.2024.114791
Saksono, H., Hidayat, B. A., Yuliana, E., Wicaksono, B., Afriyanni, Wulandari, S. N., Momon, M., Matara, K., & Amri, N. H. (2022). The Impact of Tourism and The Creative Industry on The Economy of The Community. 22–25. https://doi.org/10.2991/aebmr.k.211225.004
Singh, P., Tabe, T., & Martin, T. (2022). The role of women in community resilience to climate change: A case study of an Indigenous Fijian community. Women’s Studies International Forum, 90, 102550. https://doi.org/10.1016/j.wsif.2021.102550
Suresh G. (2024). Impact of Financial Literacy and Behavioural Biases on Investment Decision-making. FIIB Business Review, 13(1), 72–86. https://doi.org/10.1177/23197145211035481
Tapfuma, M. M., Musavengane, R., & Magwaza, R. (2024). The role of creative tourism through arts and crafts in promoting inclusive tourism in Zimbabwe. Journal of Tourism and Cultural Change, 22(1), 1–20. https://doi.org/10.1080/14766825.2023.2231401
Wang, Y., Qiu, Y., Ren, L., Jiang, H., Chen, M., & Dong, C. (2024). Social support, family resilience and psychological resilience among maintenance hemodialysis patients: a longitudinal study. BMC Psychiatry, 24(1), 76. https://doi.org/10.1186/s12888-024-05526-4
Zhang, Y., Ding, Y., Liu, C., Li, J., Wang, Q., Li, Y., & Hu, X. (2023). Relationships Among Perceived Social Support, Family Resilience, and Caregiver Burden in Lung Cancer Families: A Mediating Model. Seminars in Oncology Nursing, 39(3), 151356. https://doi.org/10.1016/j.soncn.2022.151356
Zhao, J., Yang, D., Zhao, X., & Lei, M. (2023). Tourism industry and employment generation in emerging seven economies: evidence from novel panel methods. Economic Research-Ekonomska Istraživanja, 36(3). https://doi.org/10.1080/1331677X.2023.2206471