The Mediating Role of Financial Management in the Effects of Income, Expenditure Level, and Financial Literacy on Personal Financial Stability

Radiman Radiman, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Sumatera Utara, Sri Fitri Wahyuni, Universitas Muhammadiyah Sumatera Utara, Raihan Ramadhan, Universitas Muhammadiyah Sumatera Utara
Received: 2026-08-21
Accepted: 2026-11-09
Published: 2026-11-11

Abstract


Purpose – This study examines the effects of income, expenditure level, and financial literacy on personal financial stability, both directly and indirectly through financial management, among Gojek partners in Medan City, where irregular earnings and high operating costs threaten financial stability. A pre-survey of 45 partners showed that 73.3% had no adequate emergency savings and 73.3% reported unstable monthly income.

Methodology – A quantitative associative design was applied to 100 active GoRide, GoFood, and GoSend partners selected through saturated sampling. Data were collected using a five-point Likert-scale questionnaire and analysed with partial least squares structural equation modelling (PLS-SEM).

Findings – All indicators were valid and reliable, with R² values of 0.770 for financial management and 0.800 for personal financial stability. Income (β = 0.543) and expenditure level (β = 0.256) significantly increased financial stability, whereas financial literacy and financial management had positive but non-significant direct effects. Income, expenditure level, and financial literacy significantly improved financial management. However, financial management did not significantly mediate any of these relationships, indicating that direct effects dominate.

Originality – The study integrates economic capacity, financial literacy, and financial management into a single model for platform workers and shows that financial management is not an effective mediator when economic determinants dominate.

Implications – Strengthening income capacity and expenditure control should be prioritised, supported by practical, context-specific financial literacy programs.


Keywords


Income ; level expenditure ; literacy finance ; management financial stability finance personal .

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DOI: https://doi.org/10.30596/ijbe.v8i1.32018

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