Global Financial Literacy Trends and Household Debt: Indonesia as a Key Global Contributor

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FORMOSA NEWS

Financial literacy plays a critical role in shaping household debt management behavior and enhancing economic resilience amidst global uncertainty. A recent bibliometric study analyzing 427 Scopus-indexed articles from 2020 to 2025 reveals that high financial literacy significantly helps individuals avoid debt traps and make more rational financial decisions.

This research was conducted by Maria Suryaningsih, Susi Susilawati, Ramdany, Ridwan Saleh, and Samukri from the Universitas Teknologi Muhammadiyah Jakarta. Their findings highlight Indonesia's position as one of the most active global contributors to financial literacy research, with over 25 scientific articles published during that period.

Why Financial Literacy Is Urgent

Digital transformation and easy access to modern financial services, such as online loans and "buy now, pay later" services, have altered public consumption patterns. Although access has become easier, many households lack sufficient understanding of the risks involved, making them vulnerable to over-indebtedness. This study indicates that financial literacy is not merely a basic theory, but a strategic instrument for building household financial resilience in the digital economy era.

Research Methodology

The researchers utilized a Systematic Literature Review (SLR) approach and bibliometric analysis with the assistance of Bibliometrix (RStudio) and VOSviewer software. A total of 427 relevant articles in the fields of economics and finance were strictly filtered from the Scopus and Web of Science databases to map publication trends, collaboration networks between authors, and the interconnectedness of key themes.

Key Findings

Based on the data analysis, there are several key findings:

• Strong Correlation: Financial literacy is proven to be closely related to financial education, debt behavior, financial inclusion, and financial resilience.
• Digital Role: In developing countries, financial literacy serves as a bridge for households to optimize the benefits of digital technology while managing investment risks.
• Indonesia's Position: Indonesia has recorded a significant scientific contribution to this topic, reflecting the seriousness of the nation's academics in responding to literacy challenges among urban and millennial populations.
• Global Networks: Researchers such as Olivia S. Mitchell and Annamaria Lusardi remain central figures in global financial literacy research collaboration networks.

Implications for Society and Policy

These findings confirm that financial education programs must not be generic but should be designed contextually according to the socio-economic needs of the community. For policymakers, these research results provide a foundation for strengthening the integration of financial literacy into educational curricula and encouraging cross-country collaboration to narrow the financial access gap between demographics.

Author Profile:

This study was compiled by a research team from the Universitas Teknologi Muhammadiyah Jakarta, consisting of Maria Suryaningsih (corresponding author), Susi Susilawati, Ramdany, Ridwan Saleh, and Samukri. This team possesses expertise in business analysis, economics, and financial literacy studies focused on household dynamics and economic policy.

Research Source:

• Article Title: Bibliometric Visualization of Global Trends in Financial Literacy and Digital Household Debt 2020-2025
• Journal Name: Indonesian Journal of Business Analytics (IJBA)
• Publication Year: 2026
• DOI/URL: https://doi.org/10.55927/ijba.v6i3.16642