Economic Literacy Studies of Teachers
Dwi Nurhayati, Neti Budiwati and Yana Rohmana
Universitas Pendidikan Indonesia, Setiabudhi 229 street, Bandung, Indonesia
Keywords: Economic Literacy, Teachers.
Abstract: The purpose of this study is to determine and analyze the general picture of economic literacy of high
school teachers based on level of education, work experience and budget expenditure that can affect the
level of economic literacy. This research is based on numbers of unqualified economics teachers views of
the competency test in 2013. The method used in this study is a descriptive study through a survey with data
collection technique employed through testing and questionnaires. The study population were 130 high
school economics teacher from 52 schools, while a sample chosen were 80 teachers from 30 schools. The
collected data were then analyzed using descriptive statistics and cross tabulation data analysis techniques.
The results showed that the overall economy literacy of economics teacher from high school were
categorized as high. So, it can be concluded that high school economics teacher have sufficient economic
literacy.
1 INTRODUCTION
Society in everyday life cant be separated from
economic activities that link economic concepts with
practice activities but in realizing there are still some
obstacles faced in economic aspects, such as the
implementation of various government policies in an
effort to overcome the economic problems that
occur. Another phenomenon that occurs in the
society is the lack of information related to prices of
goods that are not supported by adequate income to
allow uneven levels of welfare. There is no data on
the level of economic literacy of Indonesian society
but based on the data found is the level of financial
literacy as part of the economic literacy that has
been owned by the Financial Services Authority
(www.ojk.go.id) in 2016 whose level of financial
literacy is still low reached 21.8% while the
financial inclusion index was 59.7%. This illustrates
the low level of economic literacy of the people.
One community in the society is a teacher.
Teachers are role models for others generally and for
learners especially in making decisions or actions.
According to Ruslan (2011) revealed that the fact
number of teachers in Indonesia only 1.1 million or
42.6% from the total of 2.6 million teachers of
economics studies who now meet the qualifications
of good or good quality. Preliminary research results
on the economic literacy level of 25 economic
teachers from 10 high schools in Bandung 2016
shows that the level of economic literacy of high
school economics teacher in Bandung is in high
category.
This condition is not in line with the behaviors of
consumers when one of the behaviors of economic
literacy seen from consumer behaviors. Based on
research by Budiwati (2014) that high school
teachers in Bandung have not been described as a
rational consumer and when viewed from a
preference of needs, most tend to be less well-planed
or less rationalized. This is of course a problem
because the teacher is a figure in the community
who is required to have good attitudes and behaviors
to be modeled by learners and other communities.
These conditions can cause concerns that low levels
of economic literacy, so that it is something that
must be improved to overcome the economic
problems and achieve the welfare of society.
According to Robert F. Duvall and CEO of
National Council for Economic Education
(www.minneapolisfed.org) economic literacy is a
vital skill, just as vital as reading literacy. That
economic literacy is an essential skill, as important
as reading. The importance of other economic
literacy relationship with teachers is maximum
studies consider teacher’s economic literacy as a
means to increases students’ economic literacy. It is
true but teacher’s economic literacy is equally
Nurhayati, D., Budiwati, N. and Rohmana, Y.
Economic Literacy Studies of Teachers.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 209-214
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
209

important and essential for self as a responsible
citizen of the country. Teachers may raise awareness
and economic literacy among the society through
students (future citizen) (Pandey and Bhattacharya,
2012).
According to Sina (2012) the low level of
economic literacy in the community will effect a
person’s difficulty in making in decisions,
experiencing difficulties in the fulfillment of funds
for various activities, consumptive attitude to
society, gullible such as investment case, low spirit
of society in saving, lack of information about the
price of goods with lower income levels than their
expenditures so that uneven levels of welfare and
excessive shopping habits affect the difficult of
being a smart consumer. The impact will lead to
increasingly difficult society in achieving in welfare.
According to Jappeli (2009) research on
economic literacy looks at the relationship between
cognitive abilities (continued with PISA test scores,
enrollment rates to college, community life
expectancy), social interactions measured by the
number of people and technology infrastructure and
resources for investment measurement of GDP per
capita, income growth or finance, social security
system). Based on previous study Muhammad Rakib
(2015) said that the socio-economic condition of the
family and consumption behavior have a positive
effect on the economic literacy of the community.
And previous study Pandey and Bhattacharya (2012)
to find out the actual state of economic literacy of
senior secondary school teachers with sex, type of
school board (CBSE & UP), and economics studied
as a formal course.
Several other authors have reported on the effect
of the teacher’s economic (Walstad 1980; Greenfield
1982; Chizmar & Halinski 1983; Schober 1984).
Many researchers have previously investigated
factors the socio-economic to economic literacy, but
currently the author tries to combine factors socio-
economic with one application of economic literacy
in terms of finance. Based on the mention above
phenomena, this study tries to find and analysis
economic literacy of high school teachers in
Bandung seen from level of education, work
experience and budget expenditure.
2 LITERATURE REVIEW
Economic literacy is defined as the understanding
and application of basic economic concepts to
reallife situations (not just classroom based) (Salemi
2005). Economic literacy is important because
teachers as consumers are facing the problem of
making choices in the market (Yunus, Ishak and Jalil
2010). The National Council on Economic
Education (NCEE 2008) advocates the development
of economic literacy of teachers and students. When
teachers have the skills and to exercise curriculum
effectively, they can prepare students to act as
intelligent and economically literate individuals at
school and in society (Agnello, 2001; 2007).
National Assessment of Economic Education
(NAEE) survey was completed in 1987 by the Joint
Council on Economic Education. The results of the
study indicate that (a) state mandates do have a
negative impact on teacher attitudes, (b) teacher
attitudes do have a direct relationship with student
learning, and (c) increased economic education and
training for teachers may have a positive effect on
teacher attitudes and this effect in return may
improve student’s performance.
In the United States, The National on Economic
Education (NCEE) is given task to socialize
economy literacy and according to NCEE, the
criteria used as a method to measure economy
literacy level comprises of 20 indicators developed
in form of a test of both micro and macro economy.
Based on prior researches, it was mentioned that the
level of economic literacy in a country is inseparable
from social-economy groups and became one of the
main factors which affects the level of economy
literacy (Walstad, 1999; Jappeli, 2009;
Bhattacharya, 2012; Hashim & Kayode, 2013;
Yasmin dkk, 2014; Varum dkk, 2014; Budiwati,
2014; Rakib 2015).
Sina (2012) also suggests that economy literacy
had an effect on assets, accurate debt management,
protection, increased amount of savings, and more
wisdom on money management, it helped to create
values and welfare that crystallized in smart
behavior. It also helped to prompt individual
awareness on how to enhance smarter option
patterns. It means that every individual comprehend
on how to do some analyze whenever they have to
make a decision, in other words decision makers
would think first before they make a decision.
3 METHODS
The research method used in this research is
descriptive method with the distribution of surveys.
The object of this research is economic literacy
while the subject of this study is economic studies
teachers a high school in Bandung. The population
of this research are 130 high school economic
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
210

studies teachers from 52 different schools as for the
samples obtained are 98 teachers, but due to some
problems that encountered during research, the
number of samples are 80 teachers with the utilize of
random sampling and proportional random
sampling. The instruments used for this research is
the research testing and questionnaire about
economic literacy variables.
Based on the results of testing the validity of
each item, then the result r
count
> r
table
so declared
valid and feasible to be used as an instrument.
Testing instrument reliability test in this research
from each item question on the questionnaire
consisting of one variable research results r
count
> r
table
so it is declared reliable means all research
variables can be declared trustworthy. The data
obtained were analyzed using descriptive statistics.
Overview of economic literacy level of high school
teachers in Bandung using frequency calculating,
percentage and cross tabulation (crosstab) and t test.
4 RESULTS AND DISCUSSION
The teacher’s economic literacy level is derived
from a test of the Test of Economic Literacy (TEL)
developed by the National Council for Economic
Education (NCEE) in the form of 20 questions. The
description of the level of economic literacy of high
school teachers in Bandung 2016 can be seen in
Table 1.
Table 1: Economic Literacy Level on High School
Teachers in Bandung City Year 2016
Criteria
Frequency (F)
Percentage (%)
High
48
60
Medium
25
31,2
Low
7
8,8
Total
80
100
Table 1 illustrates the level of economic literacy of
high school teachers in Bandung, on average being
in the high category of 60% or as many as 48
teachers, only 8.8% in the low category. This
indicates that high school teachers in Bandung
generally have economic literacy. Based on test
result test of 20 questions then it can be described in
Table 2.
Table 2: Overview of Economic Literacy by NCEE
Category
No
Indicators
Total
(Teacher)
1
Demand for goods
37
2
The role of entrepreneur
63
3
Tendency to save
78
4
Individual income
68
5
National income
47
6
Demand and supply
77
7
International trade
73
8
Government policy
30
9
Economic agents
66
10
Benefit of international trade
34
11
Impact on the price of goods
75
12
Use of resources
72
13
The role of the capital market
68
14
Cost benefit of economic
transactions
55
15
Cost benefit of decision making
35
16
The role of government
63
17
Budget state
71
18
The impact of inflation
68
19
Industrial development
72
20
Function of money
60
Based on Table 2, it can be seen that most
economics teachers can understand the proce level
of saving tendency, this is indicated by the number
of teachers who are able to answer the problem as
much as 78 teachers while the least economic
teacher is the impact of government policy on
pricing, it is shown with the number of teachers who
only answer as many as 30 teachers. Therefore, it is
not surprising that the majority of the people still
have difficulties in understanding the policies
adopted by the government and impacting prices. In
an effort to strenghten the economic literacy of
various factors capable of influencing it, a t-test of
economic literacy based on these factors can be seen
in Table 3.
Table 3: Economic Literacy t Test
No
Factors
Result
1
The Level of Education
2.05
2
Work Experience
4.37
3
Budget Expenditure
1.65
Based on Table 3, the average economic literacy
results from the different tests of each factors and
the average value of economic literacy is 1.49. when
viewed from the overall value of the level of
education, work experience and budget expenditure
has an average greater than 1.49, so can be
Economic Literacy Studies of Teachers
211

concluded that these factors can increase the
economic literacy of high school teachers in
Bandung and work experience has contributed more
than others to 4.37 towards the economic literacy of
high school teachers in Bandung. Other analysis
result see the level of economic literacy based on
influencing factors by using cross tabulation
(crosstab) can be seen in the next table.
Table 4: Economic Literacy and the Level of Education
Crosstab
EL
Re
High
(%)
Medium
(%)
Low
(%)
Total
(%)
Diploma
0
1,3
0
1,3
S1
57,5
26,3
8,8
92,5
S2
2,5
3,8
0
6,3
Total
60,00
31,3
8,8
100
Table 4, it showed us that economic teachers
with a bachelor’s degree had higher grade on the
economic literacy level. The higher the cognitive
grade and studying experience a person has, means
that he had higher ability on economic literacy. This
is related to how teachers get the process of learning
or learning experience, especially on the formal path
to influence the knowledge and understanding in the
field of economy. Learning experiences will affect
in behaving including determining economic
behavior in everyday life.
The cognitive ability obtained by the teachers
would affect their economic literacy. It would also
affect their economic behavior in daily life. The
level of education had an influence on decision
making, because through education the teachers
would obtain knowledge and comprehension in form
of skills and behavior. These results supported by
numerous prior researches, some examples are
Markow & Bagnaschi (2005), Hashim & Kazeem
(2013), Yunus, Ishak & Jalil (2010), and Jappeli
(2009) these research done to observe the difference
on education levels to economic literacy.
The higher the level of education will be better if
accompanied also by economic education and
ideally who have understood the economic
education can have a better level of economic
literacy also because economics education is a study
how human can meet limited economic resources to
fulfil the unlimited needs of human. Exposure on
economic literacy enables a person to act using
knowledge or education to make right decision
regarding finance (Kuhlin, 2009). In any higher
learning education, they still can make a sound
decision in their own family consumption. This is
because could be due to their experience and they
learn from their close friends and personal
observations (Yunus, Ishak and Jalil, 2010). This
urge was supported by Walsh and Mitchell (2005)
who stated that gender, age and education level
influenced consumer’s decision making in the
market place.
Table 5: Economic Literacy and Work Experience
Crosstab
EL
WE
High
(%)
Medium
(%)
Low
(%)
Total
(%)
< 1 year
1,3
0
0
1,3
1 – 5 year
2,5
0
0
2,5
6 – 15 year
7,5
3,8
2,5
13,8
16 – 25 year
13,8
12,5
0
26,3
26 – 35 year
33,8
12,5
6,3
52,5
> 36 year
1,3
2,5
0
3,8
Total
60,00
31,3
8,8
100
Table 5, it showed us that economic teachers
with the work experience between 26-35 years had
higher grade on the economic literacy level.
According to Varum, Santos and Afreixo (2014)
revealed about the effect of work experience factors
on the economic literacy level. Work experience had
higher-margin level and this become profitable
because it can accelerate economic literacy from a
person’s work experience. The acceleration of work
experience toward economic literacy could be as a
result of several important factors such as time,
frequencies, assignments, applications and result.
The same thing according to Koshal, Gupta, Goyal
& Choudhary (2008) they verified that the marginal
rate of economic literacy on the order of experience
increased at a greater rate, which suggested that
gains in economic literacy are accelerated by
experience in the job market.
When viewed from the understanding of the
experience it self is what has been felt, known, do it.
Then, the definition of work is an activity to do
something then with the longer working means more
problems and solutions in handling something, of
course, to overcome certain problems needed skills
or knowledge skills that have been accepted. Ideally,
the longer a teacher the more skill he has.
The longer of the work experience gained then
expected to have an impact on the better quality of
teaching and learning process. Long work
experience also in a profession is not an easy thing,
especially when married and have a burden of
family dependents. The number of dependents of the
family to be one reason for housewives to work to
earn income. The more respondents who have
children and dependents of their families, the time
provided for work more effective (Widyawati and
Pujiyono, 2013).
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Table 6: Economic Literacy and Budget Expenditure
Crosstab
EL
BC
High
(%)
Medium
(%)
Low
(%)
Total
(%)
Accordance
18,6
18,6
7,0
44,2
Sometimes
27,9
11,6
7,0
46,5
No
accordance
7,0
0
2,3
9,3
Total
53,5
30,2
16,3
100
Table 6, that can be seen from the high economic
literacy is capabillity to arrange expenditure budget,
teachers who make budget expenditure of 43
teachers and in accordance with the budget
expenditure but as many as 37 economic teachers
have no expenditure budget and based on the
observation that it does not matter because the
expenditure does not exceed its income. So it can be
concluded that the economic teacher in Bandung has
been able to manage finances regularly.
Managing monthly expenditures is important for
overall financial planning. The principle that
expenditure should not exceed the income received.
Especially in the midst of the many economic
problems faced by everyone must always be wary of
unexpected expenditures even rising raw material
prices and resulted in increased expenditure.
The necessity of this awareness is realized or not
much around us that there is no financial problem on
the grounds that the amount of income needed is
small to manage, while for the big income also feel a
lot of money so do not need financial management
high level of economic literacy should Able imagine
by way of understanding finance And ownership of
resources within a family will be relatively limited,
depending on the number and quality of people
participating in income-seeking, whereas the needs
and wants of each family member are relatively
unlimited. Needs and desires for goods and services.
Managing the monthly routine expenditure is the
most important thing for arranging the overall
finance. To utilize the limited source of money to
reach the optimum effort of the finance management
that effective and efficient will be needed. Although
finance management will not guarantee the source of
money will be enough to provide the need and desire
however management can help decide the use of
limited resources for priority and approved by all the
family, this matter is supported by Karov (2010)
which reveals that shopping is accordance to
capability and needs.
According to Theng (1999) insisted that
spending is the usable income of an individual
within a given period of time. As a person who has
economic literacy is ideally able to create
expenditure budget for a certain period of time. It
should be noted also that the needs and desires of
service goods from time to time are always changing
and tend to continue to grow.
5 CONCLUSIONS
Considering the result of research and data analysis
conducted, it can be concluded that the level of
education, work experience and budget expenditure
can increase the economic literacy of high school
teachers in Bandung these results are based on cross
tabulation and t test. This research provides
implications on the importance of growing and
developing economic literacy through economic
education. The need of economic education both
through formal education in school and college like
using learning model based on economic literacy
and centered to student activities (student center),
creative learning technique inovative and also
through informal education in the family as the
example for self establishment for remembering the
importance of growing and developing economic
literacy from the beginning. Especially, teachers are
supposed to take initiative to improve economic
literacy in many ways for example by print or
electronic media.
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