The Village Government has a strategic role and position in public services and community empowerment. Therefore, to be able to empower the community and carry out service functions, villages must be empowered and empowered in any sector, one of which is managing village finances. This research answers about village financial management policies in realizing good governance. This type of research is empirical juridical research, which examines the legal provisions that apply and what has happened in people's lives. The research results conclude that the affirmative policy of Law Number 6 of 2014 concerning Villages has a positive effect on the effectiveness of village government in Magelang Regency. Where village financial management policies are good in the planning, implementation and accountability processes guided by the principles of financial management that apply the principles of good governance, such as professionalism, accountability, transparency, efficiency, and effectiveness through making regulations and/or policies and acceptable to the whole community, in purpose of achieving the vision and mission of the village "Achieving village harmony to build" independently, independently, independently and self-managed.