The Effect of Financial Literacy, Locus of Control, and Financial Stress on Financial Well-Being: Evidence from Middle-Income Households in Indonesia

DOI

10.2991/978-94-6239-670-8_13How to use a DOI?

Keywords

Financial Well-Being; Financial Literacy; Locus of Control; Financial Stress; Middle-Income Households

Abstract

Financial well-being has become an increasingly important topic in understanding how individuals manage their finances amid rising living costs and economic uncertainty. This study aims to examine the influence of financial literacy, locus of control, and financial stress on the financial well-being of middle-income households in Jakarta, Indonesia. Using a quantitative approach with a cross-sectional design, data were collected from 171 respondents selected through purposive sampling. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that financial literacy and locus of control have a significant positive effect on financial well-being, while financial stress has a negative but insignificant effect. These findings suggest that improving financial literacy and fostering a strong internal locus of control can improve the financial well-being of middle-income households. Meanwhile, reducing financial stress does not necessarily translate into improved financial well-being. This study emphasizes the need for the government and financial institutions to implement financial literacy programs and encourage sustainable financial behavior to improve the stability and economic resilience of the middle class in Indonesia.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Lilis Susilawaty
AU  - Ignatius Roni Setyawan
AU  - Keni Keni
PY  - 2026
DA  - 2026/05/13
TI  - The Effect of Financial Literacy, Locus of Control, and Financial Stress on Financial Well-Being: Evidence from Middle-Income Households in Indonesia
BT  - Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
PB  - Atlantis Press
SP  - 155
EP  - 169
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-670-8_13
DO  - 10.2991/978-94-6239-670-8_13
ID  - Susilawaty2026
ER  -