An Analysis of Personal Financial Distress: A Review of Financial Behaviors among Rural and Urban Communities

DOI

10.2991/assehr.k.220204.006How to use a DOI?

Keywords

financial behavior; financial distress; rural and urban communities; spending behavior; wellbeing

Abstract

The development is intended to provide welfare to the community and to boost the nation’s economy. Financial wellbeing is the state which lies opposite to financial distress. The rural community people in Penyangga village, North Sumatera - Indonesia, have not generated significant income from non-timber forests products and other sources. The present study aims at comparing the financial distress experienced by rural community people of Penyangga village and urban community people of Medan city with relatively similar amount of income. A total of 30 rural people and 30 urban people were involved as the respondents in this study. To observe the difference between financial behavior and financial distress, a discriminant analysis was performed. The test results demonstrated that at alpha five percent, there is no difference in the spending behavior and debt payoff between these two groups. However, there is a significant difference in the financial distress being experienced. Rural community people tend to feel more prosperous with their own financial condition and feel less financially depressed. Despite being financially short and rely solely on rice and vegetables in their neighborhood for food, they live at the constant state of happiness.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Khaira Amalia Fachrudin
AU  - Siti Latifah
PY  - 2022
DA  - 2022/02/15
TI  - An Analysis of Personal Financial Distress: A Review of Financial Behaviors among Rural and Urban Communities
BT  - Proceedings of the Second International Conference on Public Policy, Social Computing and Development (ICOPOSDEV 2021)
PB  - Atlantis Press
SP  - 36
EP  - 38
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220204.006
DO  - 10.2991/assehr.k.220204.006
ID  - Fachrudin2022
ER  -