Local Wisdom-Based Practical Life and Project-Based Learning for Early Childhood Financial Literacy: A Systematic Literature Review

Abstract

This systematic literature review synthesizes evidence on local-wisdom-based Practical Life activities and project-based learning (PjBL) for developing financial literacy in early childhood education. Following PRISMA 2020, searches covered Google Scholar, Scopus, DOAJ, Sinta, university repositories, and reference tracking for publications from 2020 to 2025. The selection process identified 281 records, removed 65 duplicates, screened 216 titles and abstracts, assessed 66 full-text reports, and included 25 studies in the qualitative thematic synthesis. Four connected findings emerged. First, Practical Life routines translate financial ideas into concrete habits by teaching children to care for materials, recognize limited resources, make choices, and assume responsibility. Second, PjBL develops planning, collaboration, problem solving, simple budgeting, saving, and decision making through authentic projects such as classroom shops, mini-banks, markets, and product-making activities. Third, local wisdom strengthens relevance by embedding thrift, sharing, mutual assistance, family production, and traditional market practices in learning. Fourth, the strongest model integrates these elements as a progression from daily habits to collaborative projects and culturally meaningful reflection. The evidence remains limited by heterogeneous measures, short intervention periods, geographic concentration, and few studies testing the integrated model directly. The review recommends developmentally appropriate assessment instruments, longitudinal and cross-cultural studies, and teacher professional development that connects financial concepts with children’s lived experiences.