Viral Condition of the Latest Tuban Billionaire, This is the Response of an Economic Expert at UM Surabaya

A number of villagers in Sumurgeneng, Jenu District, Tuban, East Java suddenly became billionaires after receiving compensation from the sale of land and land for a PT Pertamina oil refinery construction project in February last year. They generally buy up cars and other luxury needs. However, after one year, some of these residents fell into poverty because they had no more sources of income that they could get as they could when they could work on their agricultural land.

Responding to this, UM Surabaya economist Arin Setyowati assessed that the lack of knowledge of financial literacy in the Sumergeneng community was low. The money has run out without being based on long-term calculations to sustain further sustainability.

Arin explained that financial literacy is a person's ability to effectively understand financial management, so that a person can prioritize what is urgent and what is not.

“Financial literacy is one of the important skills needed today, and its internalization needs to be as early as possible so that it will form a habit and become a good character for every generation. Especially for Muslims, it is very important to pay attention to proper planning and management of finances and assets for provisions in the afterlife," said Arin, Sunday (30/1/22)

Arin also explained in the literature published by the Financial Services Authority (OJK) regarding family financial management. The details of the percentage allocation for ZIS spending are 5%, savings and emergency funds are 10%, household expenses are 40%, future investments are 5%, children's education funds are 10%, loan installments are 20%, insurance premiums are 5% and entertainment are 5% %.

"The percentage allocation is an ideal composition, the percentage is a minimum standard in efforts to good financial management and of course it must be continued with discipline to maintain the budget pattern," added Arin.

At the end of his presentation Arin also explained the phenomenon of Sumurgeneng residents whose fatal mistake was without planning, over-budgeting so that more is spent and is consumptive in nature, not a productive asset that can be an alternative as a replacement income for further survival.