Determinants of Financial Well-being: The Moderating Role of Internal Locus of Control

Dina Aulia Agustiani; Rahmadani Nur Permanawati

doi:10.26737/jtmb.v12i1.9218

Determinants of Financial Well-being: The Moderating Role of Internal Locus of Control

Dina Aulia Agustiani, Rahmadani Nur Permanawati

Abstract

This study aims to analyze the influence of financial literacy, financial stress, and financial behavior on financial well-being, with internal locus of control as a moderating variable, among workers in Semarang City. A quantitative method was used, employing purposive sampling of 135 respondents with incomes at or below the regional minimum wage. Data analysis was conducted using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The results indicate that financial literacy and internal locus of control have a positive and significant effect on financial well-being. Conversely, financial stress, financial behavior, and all moderation effects were found to be insignificant. Based on the study’s findings, it is recommended that workers enhance their comprehensive financial literacy and self-control. Meanwhile, future researchers are advised to explore macro-level factors beyond the psychological model to address the limitations of this study.

Keywords

Financial Literacy; Financial Stress; Financial Behavior; Financial Well-Being

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DOI: http://dx.doi.org/10.26737/jtmb.v12i1.9218

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