Factors Underlying Family Financial Planning: a Case Study in Surabaya

Family financial planning is essential for each family. Financial planning has an important role to help families manage their financial resources and ensure achievement of family financial goals. In practice, many families do not realize the importance of financial planning. The aim of this research is to identify factors that underlie the importance of family financial planning.
Respondent of total 270 married men living in Surabaya participates in this research. Factor analysis reveals that there are seven factors underlie the importance of family financial planning. These factors are safety factor, lifestyle factors, reference group factors, cultural factors, life cycle factors, social class factors and economic condition factor. Factor analysis also reveals that in Surabaya the most important factors underlie the importance of family financial planning is safety factor.