Cultural Influences on Family Income and Expense Management in Timor-Leste (Study Case in Urban and Rural Areas)

This research investigates the cultural influences on family income and expense management in both urban and rural areas of Timor-Leste. By focusing on five key municipalities-Oecusse, Lautem, Baucau, Bobonaro, and Dili-the study explores how traditional practices, social structures, and local customs shape financial behavior across diverse regions. Using a qualitative research methodology, the study relies on in-depth interviews with key informants, including village chiefs, traditional leaders, women’s and men’s representatives, and heads of households. These informants offer insights into the socio-cultural factors that guide household income allocation, expense priorities, and savings strategies.

The analysis reveals distinct cultural dynamics between urban and rural areas, particularly in how communities adhere to traditional practices such as dowry (barlake), community obligations, and extended family support systems. In rural areas, income and expense management often reflect collective decision-making influenced by local customs, while urban households show a gradual shift towards more individualistic financial practices. Gender roles also play a significant part, with women often responsible for managing household expenses and savings, albeit within culturally defined limits.

This research contributes to the understanding of how cultural factors impact financial management at the household level in Timor-Leste, providing valuable insights for policymakers, financial institutions, and development programs aimed at improving economic stability and promoting sustainable financial practices. The study concludes with recommendations to tailor financial literacy programs and microcredit initiatives to the cultural context of both rural and urban households in Timor-Leste.