Effects of Sandwich Generation and Financial Literacy on Over-Indebtedness of Government Officers in Office of the Permanent Secretary, Ministry of Commerce

Abstract

This study aims to examine the behaviors and factors influencing over-indebtedness among civil servants under the Office of the Permanent Secretary, Ministry of Commerce. Primary data were collected through 313 questionnaires and analyzed using descriptive statistics and inferential statistics through a Logit Model to explore the relationships between demographic, economic, environmental factors, and financial literacy in relation to over-indebtedness. The results revealed that statistically significant positive factors contributing to over-indebtedness include being part of the sandwich generation (i.e., individuals financially responsible for supporting at least two generations of family members), homeownership, and car ownership. On the other hand, statistically significant negative factors include average monthly expenses, workplace location, financial literacy, and financial behavior. Therefore, relevant agencies should implement targeted support measures, especially for individuals in the sandwich generation, such as financial assistance, tax relief, and financial literacy promotion. Additionally, establishing internal financial advisory services is also recommended to enhance financial discipline, reduce the risk of over-indebtedness, and sustainably strengthen the economic stability of public sector personnel.