THE PRACTICE AND MEANING OF MENTAL BUDGETING IN HOUSEHOLD FINANCIAL MANAGEMENT IN POOR FAMILIES IN MADIUN REGENCY: A PHENOMENOLOGICAL STUDY

Anny Widiasmara, Nurhayati Nurhayati

Abstract


Household financial management in poor families is a crucial aspect in maintaining economic sustainability and family well-being. This study aims to identify and analyze the practices and meanings of mental budgeting in household financial management among poor families in Madiun Regency. This study used a qualitative approach with a phenomenological method. Twelve informants participated in this study, consisting of housewives, heads of families, village officials, and Family Hope Program (PKH) facilitators. Data were collected through in-depth interviews and observations, then analyzed thematically. The results indicate that mental budgeting plays a significant role in household financial management, particularly in helping housewives manage expenses more economically. However, the practice of mental budgeting still faces various obstacles, such as strict but inflexible budget allocations, limited income that influences spending priorities, separation of funds based on income sources, minimal recording of expenses, and reliance on debt as an emergency solution. These findings align with previous research that confirms that mental budgeting is influenced by psychological and social factors. Therefore, this study recommends improving financial literacy, fostering the habit of recording expenses, and strengthening a more structured and flexible understanding of mental budgeting to improve the welfare of low-income families.

Full Text:

PDF

References


Antonides, G., Manon de Groot, I., & Fred van Raaij, W. (2011). Mental budgeting and the management of household finance. Journal of Economic Psychology, 32(4), 546–555. https://doi.org/https://doi.org/10.1016/j.joep.2011.04.001

BPS. (2025). Berita resmi statistik.

Chudziak, S. (2024). Consumption Modelling Using Categorisation-Enhanced Mental Accounting. Computational Economics, 64(3), 1391–1442. https://doi.org/10.1007/s10614-023-10475-3

Creswell, J. W. (2007). Qualitative Inquiry & Research Design Choosing Among Five Apporoaches. California: Sage Publication Inc.

Epley, N., Mak, D., & Idson, L. C. (2006). Bonus or rebate? The impact of income framing on spending and saving. Journal of Behavioral Decision Making, 19, 213–227.

Ginting, R., Anugrah, W. R., & Yunita, K. (2022). Studi fenomenologi tentang mental accounting: pandemi versus endemi dalam se-buah analogi pengelolaan uang saku,DOI: https://doi.org/10.30872/jakt.v19i4.12275. Akuntabel:Jurnal Ekonomi Dan Keuangan.

Habibah, U., Hassan, I., Iqbal, M. S., & Naintara. (2018). Household behavior in practicing mental budgeting based on the theory of planned behavior. Financial Innovation, 4(1), 28. https://doi.org/10.1186/s40854-018-0108-y

Heath, C., & Soll, J. B. (1996). Mental budgeting and consumer decisions. Journal of Consumer Research, 23, 40–52.

Javareshk, M. B., Pulford, B. D., & Krockow, E. M. (2024). Mental accounting in tax liabilities. DECISION, 51(2), 153–164. https://doi.org/10.1007/s40622-024-00385-0

Karlsson, N., Gärling, T., & Selart, M. (2024). Effects of Mental Accounting on Intertemporal Choice. 5, 1–17.

Pasek, G. W. (2024). Pengaruh Mental Accounting Terhadap Pengambilan Keputusan Keuangan Pada UMKM. Jurnal Akuntansi Profesi, 15(03), 517–523. https://doi.org/10.23887/jap.v15i03.89044

Reinholtz, N., Bartels, D. M., & Parker, J. R. (2015). On the Mental Accounting of Restricted-Use Funds: How Gift Cards Change What People Purchase. Journal of Consumer Research, 42(4), 596–614. https://doi.org/10.1093/jcr/ucv045

Rosalina, E., Rahim, R., Husni, T., & Alfarisi, F. (2021). Mental Budgeting dan Motivasi Terhadap Pengelolaan Keuangan Individu. Journal of Applied Accounting and Taxation, 6(2), 175–182. https://doi.org/10.30871/jaat.v6i2.3008

Rosalina, E., & Rahmi, A. (2022). Pengaruh Motivasi, Culture, dan Mental Budgeting Terhadap Management of Household Finance Melalui Komitmen. Journal of Applied Accounting and Taxation, 7(2), 81–93. https://doi.org/10.30871/jaat.v7i2.4596

Thaler, R. H. (1990). Saving, fungibility, and mental accounts. Journal of Economic Perspectives, 4, 193–205.

Tversky, A., & Kahneman, D. (1981). The framing of decisions and the rationality of choice. Science, 211, 453–458.


Refbacks

  • There are currently no refbacks.


 

 

 

 

 

 

 

Editorial Office:

Universitas PGRI Madiun

Kampus 3 Lantai 2

Fakultas Ekonomi dan Bisnis

Jl. Auri no. 14-16 Madiun