Improving Financial Literacy Through Introduction of Cash Flow Statements for PKK Women in Garuda Subdistrict

Abstract

This community service program was designed to enhance the financial literacy of PKK women in Garuda Subdistrict, Andir District, Bandung, by introducing the concept and practice of preparing cash flow statements for household and micro‑business finances. Garuda is an urban area with dense population and heterogeneous income levels, where many households depend on informal and unstable sources of income, making structured cash flow management crucial for economic resilience. However, most PKK members had never formally prepared financial reports and tended to record income and expenses in an unstructured manner, which limited their ability to plan, save, invest, and avoid consumptive debt. The program applied a participatory action research (PAR) design combined with an asset‑based community development (ABCD) approach, engaging PKK women as active co‑learners and leveraging existing community assets such as social cohesion, local organizational structures, and ongoing PKK activities. Activities included interactive lectures on basic financial literacy, training on the structure and classification of operating, investing, and financing cash flows, guided practice using simple cash flow templates, simulations of household budgeting in the context of inflation, and motivational sessions on developing a positive financial mindset. Result that can achieved from this activity, simple tools can have meaningful effects on financial awareness with almost 90% of paticipants and self‑reflection among community members with limited prior exposure to formal financial education. This is in line with one of the goals of community service, namely financial literacy.