Understanding Financial Capital of Rural Migrant Households in Central Java: A case study in Nusawungu District, Cilacap Regency

¹ Departement of Agribusiness, Faculty of Agriculture, 55183 Universitas Muhammadiyah Yogyakarta, Indonesia
² Departement of Sharia Economics, Faculty of Islamic Studies and Civilization, 55183 Universitas Muhammdiyah Yogyakarta, Indonesia

^* Corresponding author: cahyo.wisnu@umy.ac.id

Abstract

This study examines the understanding and utilization of financial capital among rural migrant households in Nusawungu District, Cilacap Regency, Central Java. Many households face challenges in anticipating future financial outcomes, setting clear economic goals, and assessing their financial decision-making skills. To address this, the research investigates financial capital through financial literacy and the management practices, with a specific focus on sharia-compliant approaches, as these are relevant to the local socioeconomic and cultural context. A total of 30 migrant households in Danasri Lor Village were selected as the study sample. Data were collected through structured interviews, financial behavior assessments, and household budgeting records. The analysis highlights that enhanced financial literacy—particularly in areas such as savings behavior, cost control, and investment planning—positively correlates with improved financial stability and livelihood resilience. The findings suggest that targeted interventions in financial capital and entrepreneurial planning may significantly strengthen the financial capital of rural migrant households. Further research with a broader sample size is recommended to validate and generalize these results to other rural migrant communities in Indonesia.