Buddhist Innovation in Income and Expenditure Management to Strengthen Individual Financial Stability

Abstract

This research article has three objectives: 1) to examine the principles of Bhogavibhāga, the principles of Diṭṭhadhammikattha, and the approach to designing innovations in personal income and expenditure management; 2) to develop a prototype Buddhist innovation for personal income and expenditure management; and 3) This research article had three objectives: 1) to examine the principles of Bhogavibhāga and Diṭṭhadhammikattha, as well as approaches to designing an innovation for personal income and expenditure management; 2) to develop a prototype Buddhist innovation for personal income and expenditure management; and 3) to evaluate user satisfaction and assess the fit of the relationship model between the prototype Buddhist innovation and personal financial resilience using structural equation modeling (SEM). This research employed a research and development (R&D) design combined with a mixed-methods research, beginning with documentary research and qualitative research through in-depth interviews to explore user needs from the target group, as well as from experts in Buddhist principles and financial management.  The collected data were synthesized with the principles of Bhogavibhāga and Diṭṭhadhammikattha and subsequently applied through the design thinking process to develop the prototype Buddhist innovation.  The prototype was then implemented with 350 volunteers to evaluate satisfaction and analyze causal relationships using a structural equation model. 

The research findings revealed that: 1) The Bhogavibhāga and Diṭṭhadhammikāttha principles can be applied as a framework for personal income and expenditure management.  The Bhogavibhāga principle provides guidelines for allocating income appropriately for living expenses, occupational activities, business investment, and savings, whereas, the Diṭṭhadhammikāttha principle provides guidelines for establishing and maintaining economic security through diligence, wealth conservation, good companionship, and living within one's financial status.  When synthesizing both principles with financial management concepts, they formed a concrete framework for designing Buddhist innovations in personal income and expenditure management.  2) The prototype Buddhist innovation developed through the design thinking process integrates Buddhist principles with contemporary financial concepts and behaviors.  It aims to promote income allocation, expenditure control, savings and wealth conservation, moderate living, and mindful and prudent financial decision-making.  The implementation results showed that the prototype serves as a systematic approach to supporting personal income and expenditure management.  3) The evaluation results indicated an overall high level of user satisfaction, with a mean score of 4.46 and a standard deviation of 0.51.  The structural equation model analysis showed that Buddhist innovation in income and expenditure management (BI) and financial attitude (AT) significantly influenced financial management based on Diṭṭhadhammikāttha principle (DM) and contemporary financial behavior (CB), which in turn directly and indirectly affected personal financial resilience (FB) with statistical significance.  The model exhibited a good fit with the empirical data (χ² = 276.65, df = 242, n = 350, p = .062, CFI = .974, TLI = .963, RMSEA = 0.02, SRMR = 0.03 and χ²/df = 1.14), indicating that the developed model appropriately explains the relationships among the Buddhist innovation, financial management behavior, and personal financial resilience.