The Application of Behavioral Finance in Improving the Economic Level of Poor Families

Family financial behavior determines the economic level of the family, a prosperous family is not measured by the level of income or overall income in a family, but with an indicator of balanced income and expenditure. Family financial behavior needs to be done rationally, because mathematical calculations are very important in planning long-term financial management. Previous research shows that financial behavior is not always based on logical considerations, but rather focuses on emotional considerations. This study uses a qualitative approach with a case study method that aims to focus on explaining the events that occur in a case, where the research was conducted in Cadas Gantung Village, Mekarmanik Village, Cimenyan District, Bandung Regency. Data collection techniques using structured interviews, observation and documentation, data obtained are then analyzed using data reduction, data presentation and conclusion drawing. The results of the study show that the application of financial behavior based on bounded rationality can increase family knowledge in considering financial decisions, so that financial planning can be planned well and programmed. This research is theoretically useful, especially in adding references to economics studies and in practice in helping the economies of underprivileged families.