Yogyakarta, November 13, 2024— The Faculty of Psychology at Universitas Gadjah Mada (UGM) continues to demonstrate its commitment to supporting the achievement of the Sustainable Development Goals (SDGs) by researching the adaptation of financial well-being measurement tools. This research focuses on Indonesia’s growing middle class, which plays a critical role in national economic growth.
The study aims to adapt the Financial Well-Being Scale developed by the Consumer Financial Protection Bureau (CFPB) to measure financial well-being within the cultural and socio-economic context of Indonesia. The measurement tool not only assesses objective financial conditions but also includes individuals’ perceptions of financial security and freedom.
“Through this research, we hope to make a tangible contribution to more inclusive and sustainable economic policies,” said Rahmat Hidayat, Ph.D., the principal researcher from the Faculty of Psychology UGM. “This aligns with UGM’s commitment to actively contributing to the SDGs, particularly SDG 1 (No Poverty), SDG 3 (Good Health and Well-Being), and SDG 8 (Decent Work and Economic Growth).”
The study results show that the adapted scale has good validity and reliability, with a Cronbach’s alpha of 0.692 and McDonald’s omega of 0.701. This scale can serve as a reliable tool for assessing financial well-being in Indonesia and can be used as a foundation for formulating more effective policies to improve public welfare.
The research also supports SDG 10 (Reduced Inequalities) by identifying factors that influence financial well-being among the middle class. Through a collaborative approach, the Faculty of Psychology UGM aims to foster strategic partnerships to achieve SDG 17 (Partnerships for the Goals), both nationally and internationally.
For more information about this research, please contact theFaculty of Psychology UGM at r.hidayat@ugm.ac.id.