People need money because it helps businesses grow and develop. People running a business need to know how to handle their money wisely and keep abreast of what's happening in the financial markets. Managing money well can help people save and invest, and make smart decisions for the future. It is important for everyone to learn about money and how to manage it, so that they can make good choices with their own money. The government also thinks this is important and wants to teach people how to be smart with their money. In simple terms, in small businesses, investment financial literacy means understanding how to make smart decisions about investing money in a business. This includes knowing how to handle investments from other people or partners, as well as making investments in other businesses that sell their products. It is important to look at various factors and analyze them before deciding where to invest. In running a business, the goal is to generate money (revenue). This is money earned from selling products or services. Small business owners must be good at managing their money wisely so that their business can grow and be successful. They can track how much money they make by keeping financial reports. In the city of Medan there are lots of small businesses that make and sell good food. This business has to work very hard to come up with new and unique ideas to attract customers. But sometimes, these businesses have a hard time managing their money. They don't know how to handle their finances properly, which can make it difficult for them to grow and thrive. Many of these businesses in Medan do not have the proper knowledge or skills to manage their money well. This can cause problems and make it difficult for them to run their business smoothly. Good financial management is very important for this business to be successful. This research tries to find out the following; 1. Does basic financial skills literacy have a positive and significant effect on financial management, 2? Does loan literacy have a positive and significant effect on financial management, 3? Does investment literacy have a positive and significant effect on financial management? 4. Does insurance literacy have a positive and significant effect on financial management? They think that if people know more about these things it will have a positive effect on how they manage their money.

Financial Literacy

Literacy is an individual's ability to use all the potential and skills possessed in life so that literacy includes a person's ability to process and understand information when carrying out the process of reading and writing [1,2] Sadalia, [3] defines financial literacy as a necessary numerical skill and understanding of basic economic concepts needed to educate in saving and borrowing decisions [4] whereas according to [20] explains that financial literacy is basic needs for everyone to avoid financial problems. Financial literacy has been shown to influence various financial behaviors, therefore understanding methods for increasing financial literacy is very important for improving personal financial management [5].

Financial Manager

According to [6] states that "financial management is all activities related to the acquisition, financing and management of assets with several overall objectives. Financial management is an activity of planning, budgeting, checking, managing, controlling, seeking and storing funds owned by an organization or company [7,8]. Personal financial management is determined by the knowledge possessed by an individual. A person's ability to manage finances is one of the important factors for achieving success in life, so knowledge of both secure financial guarantees and thirdly family financial planning will help efficiently and effectively achieve financial goals. [9]. The purpose of financial management is so that companies can manage their resources, especially from the financial aspect so as to produce maximum profits and in the end can maximize the welfare of shareholders [10]. Based on the definition above, it can be concluded that financial management is a process of activities in managing company finances regarding funding and managing assets properly in order to achieve a company goal.

Basic Financial Skills

Basic financial skills are about knowing how to handle our money. This means understanding how much money we make and spend, and knowing some important money ideas. These ideas cover things like how loans work, how prices can go up over time, and how to decide if something is worth your money [11]. Personal financial management is like taking care of your own money. It's about figuring out how to use money wisely and make it last [12]. But it's not always easy because there are certain steps you need to follow. The first step is understanding how to manage your own money, and then being able to start making smart decisions with it. The important thing is to think before spending or saving your own money.

Loans and Savings

According to Garman and Forgue [21], saving means setting aside some of the money you earn and not spending it all. There are several things to think about when deciding how to save [13]. First, you want to think about how much your savings will increase over time. Next, you need to consider how the cost of the item could go up over time, as doing so could make your savings less valuable. You also need to think about how taxes might affect your savings. It's important to be able to get your money easily when you need it, without having to pay fees. You also want to make sure your money is safe in case the bank goes into trouble. Finally, some accounts may have rules or fees that you should be aware of.

Capital Investment

According to Gitman [12], Investment is when you save or put your money where it can grow and generate more money. People usually do this by putting their money into things like stocks, bonds or real estate. Insurance. According to Herlina [14], Insurance is like a special tool that helps protect you from losing money if something bad happens. It works by bringing together a group of people who may have similar problems, such as being injured or stolen. When something does go wrong, the money needed to fix it or fix it is divided equally among everyone in the group. That way, no one has to pay all the money themselves and everyone helps each other. Insurance is like having a special shield to keep you safe if something bad happens. If you don't have a steady income, you can put some of the money you earn into a special account to protect yourself from the unexpected that might go wrong [15]. Yulianti and Silvy [16] say that when we want to manage our money well, we need to plan how we will use our money to achieve our goals. These goals can be things we want to have or do in the short term or the long term. We can reach our goals by saving it, investing it, or deciding how much money to spend on things. When we manage our money well, we won't always want more stuff. Muda et al [17] also say that managing our money is like making a plan, executing it, and then seeing if it works. This helps us ensure we have enough money for what we need now and in the future.

This research uses numbers to make sense of things, and the information we collect comes directly from the people we study. We asked them questions using an organized statement list. We focus on small businesses in the food industry in a city called Medan. We collect information by giving people questionnaires to fill out. We look at numbers and use special ways to analyze them to see how one thing (variable X) affects another thing (variable Y). The equation model can be described as follows:

Y= a+b1X1+b2X2+b2X2+b3X3+b4X4+e

Information:

Y             :               Financial Management

X1           :               Basic financial skills

X2           :               Loan

X3           :              Investment

X4           :              Insurance

A             :               the average value of Y when the values X1 and X2 are equal to zero

B             :              Regression coefficient

E             :              Error

Result

Descriptive statistics show that:

Table 1: Description of Research statistics.

Sources: Data Processing (2023).

From the table above it can be seen that the basic financial skills variable (X1) with the amount of data (N) as many as 30 respondents and has an average of 4.06 with minimum value of 1.00 and maximum value of 5.00 with a standard deviation of 0.85847. Loan variable (X2) with 30 respondents has an average of 4.06 with a minimum value of 2.00 and a maximum value of 5.00 with a standard deviation of 0.71310. Investment variable (X3) with 30 respondents has an average of 4.10 with a minimum value of 2.00 and a maximum value of 5.00 with a standard deviation of 0.82180. Insurance variable (X4) with total data (N) of 30 respondents has an average of 4.22 with a minimum value of 2.75 and a maximum is 5.00 and the standard deviation is 0.72323. Financial management variables with the amount of data (N) as many as 30 respondents with an average value of 4.2867 with the minimum value is 2.60 and the maximum value is 5.00 and the standard deviation is 0.64473.

Classic assumption test Normality test:

Sources: Data Processing (2023).

Figure 1: Normality Probability Plot.

From the picture above it can be seen that the data is spread around the diagonal line and

Follow the direction of the diagonal line, so it can be concluded that the data distribution is normal.

Multicollinearity Test:

Table 2: Multicollinearity Test Results.

Sources: Data Processing (2023).

From the test results above it was found that the Variant Inflation Factor (VIF) value was 4 variables namely basic financial skills (X1), loans (X2), investment (X3) and insurance (X4) is less than 5 and the tolerance value is not less than 1. So it can be said that the regression model is free from multicollinearity problems.

Heteroscedasticity Test:

Sources: Data Processing (2023).

Figure 2: Heteroscedasticity Test.

Looking at the Scatterplots, we can see that the points are spread above and below zero. They do not gather in one place. These dots do not make a certain pattern, but go up and down, then up again. This means that the dots are not arranged in a pattern. So, it can be said that there is a problem called heteroscedasticity, which means that we cannot make a good and ideal regression model.

Multiple Regression Analysis Test:

Table 3: Results of Multiple Regression Analysis.

Sources: Data Processing (2023).

Dependent variable: Financial Management (Y)

From the table above, the regression equation is obtained as follows:

Y= βo + β1X1 + β2X2 + β3X3 + β4X4 +e

Y = 0,483 + 0,159 X1 + 0,306 X2 + 0,141 X3 + 0,316 X4

The value of the constant βo = 0.483. This means that if the things we know about basic financial skills, loans, investment, and insurance remain the same, then financial management is 0.483 or 48.3% Coefficient (X1) = 0.159, this shows that every time there is an increase in the basic financial skills variable by one unit, the financial management will increase by 0.159. The coefficient (X2) = 0.306, this shows that every time there is an increase in the loan variable by one unit, financial management will increase by 0.306. The coefficient (X3) = 0.141 indicates that every time there is an increase in the investment variable by one unit, financial management will increase by 0.141. Coefficient (X4) = 0.316, this shows that every time there is an increase in the insurance variable by one unit, financial management will increase by 0.316.

Partial Test (t test)

Table 4: Partial Test Results (t test).

Dependent Variable: Financial Management (Y)

From the Table 4 above it can be explained the probability value of each variable are as follows: Based on statistical testing t or tcount between basic financial skills (X1) to financial management (Y) of 2,253 > t table = 2.042 and a probability value of 0.033 is smaller than the level a significance of 5% or 0.05, means that it lies in the area where H0 is rejected and H1 is accepted. So that partially there is a significant influence between basic financial skills (X1) on financial management (Y). This proves that the first hypothesis is proven to be accepted; Based on statistical testing t or tcount between loans (X2) to financial management (Y) of 2,904 > t table = 2.042 and a probability value of 0.008 is smaller than the 5% significance level or 0.05, means that it is located in the area where H0 is rejected and H1 is accepted. Partially there is a significant effect between the loans (X2) on Financial Management (Y). This shows that the second hypothesis is proven accepted; Based on statistical testing t or tcount between planting variables (X3) to financial management (Y) of 2,086 > t table = 2,042 and value probability of 0.047 is smaller than the significance level of 5% or 0.05, means that it lies in the area where H0 is rejected and H1 is accepted. Partially available significant influence between investments (X3) on financial management (Y). Matter this shows that the third hypothesis is proven to be accepted. Based on testing statistic t or tcount between insurance (X4) to financial management (Y) of 3,230 > ttable = 2,042 and a probability value of 0.003 is less than 5% or 0.05, means that it lies in the area where H0 is rejected and H1 is accepted. Partially available significant influence between Insurance (X4) on Financial Management (Y). Matter this shows that the fourth hypothesis is proven to be accepted.

Simultaneous Test (Test F):

Table 5: Simultaneous Statistical Test Results (Test F).

Sources: Data Processing (2023).

 Based on the Table of regression test results above, it can be seen that the variables of basic financial skills and loans simultaneously have a significant effect on Financial Management with the results of the ANOVA test or F-count greater than F-table or (58.123 > 2.70) and a significance level of 0.000 <0.05. This shows that the four variables simultaneously have a significant effect on the Financial Management variable.

Effect of basic financial literacy skills on business financial management

Based on research, it is known that knowing basic financial information helps people manage their money better in business. Most people agree with this idea because understanding the basics of finance is important for managing money well. The more someone knows about finance, the better they can handle their business money. This is in line with Dita Harinda's research which found that knowing basic financial information had a big impact on small business owners who received assistance from Padang BUMN Creative House. So, if someone has good financial understanding, they can use that knowledge to better manage their money.

The influence of financial literacy about savings and credit on business financial management

That is, saving money and borrowing money has a positive effect on how small businesses manage their money. If people know more about loans and how to handle them, it helps businesses manage their money better. But if people don't know much about loans, it can make it harder for businesses to manage their money. This study agrees with other studies that say Sugiharti end Maula [22] knowing about loans is important for managing money well.

The effect of financial literacy on investment on management MSME finance

This research found that when people know more about investing, it helps them manage their money better. When someone understands investing, they tend to make good decisions with their money. On the other hand, if someone doesn't know much about investing, it can make it difficult for them to manage their money well. Most people in this study agreed that knowing about investing is important. This is similar to what other researchers have found, that knowing about investment means understanding things like interest rates, mutual funds, and risk. When someone knows about investing, it can help them make smart choices about where to put their money in their business or make their business more diversified. It also helps them decide when to invest and whether it is better to do it for a short or long time. This research is in line with Hossain et al [18] other research which found that knowing about investment has a positive impact on managing money for small businesses

The effect of financial literacy about insurance on financial management MS

 Research shows that understanding how insurance works can help small business owners manage their money better. Most people agree that having insurance is important because it helps protect against financial uncertainty. Having insurance for things like life, property, health, and vehicles can help small business owners in Medan avoid big losses. The main purpose of insurance is to provide assurance that if something bad happens, such as an accident or property damage, the insurance company will help cover the costs. The results of this study support previous research Alperovych [19] which also found a positive relationship between understanding insurance and small business financial management.

After studying and discussing how people handle money in small businesses in Medan City, we found a few important things. First, knowing the basics about money and how to manage it is very helpful for small business owners. The more they know, the better they can keep their business money. Second, understanding things like loans also makes a big difference in how well people manage their business finances. The more they know, the better they can handle their money. Third, knowing about investing is also important for small businesses. The more they know, the better they can manage their money and grow it. And lastly, knowing about insurance and how it works is also important. This can help small business owners protect their money and ensure they don't lose everything if something goes wrong. So basically, the more people know about money and how to handle it, the better they can run their small business. Based on what the writer has learned, the writer has some suggestions for small business owners in Medan City. The researcher thought it would be helpful for them to learn more about managing their money so they can run their business well. The Medan City government should help these business owners by teaching them about finance in seminars or workshops. The author also suggests that future researchers study more businesses and use various factors to get better results. And when conducting a survey, they should ask small business appropriate questions so they can get the right information.

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