Financial Wellbeing of Young Entrepreneurs The Integration of Fintech Use in Managing Financial Literacy and Financial Stress

Irma Vebiana; Hadi Sumarsono; Riawan Riawan

doi:10.33633/jpeb.v11i2.16727

Authors

Irma Vebiana Universitas Muhammadiyah Ponorogo
Hadi Sumarsono Universitas Muhammadiyah Ponorogo
Riawan Riawan Universitas Muhammadiyah Ponorogo

DOI:

https://doi.org/10.33633/jpeb.v11i2.16727

Keywords:

Financial Knowledge, Financial Stress, Financial Well Being, Fintech Use, Young Entrepreneurs

Abstract

The low financial wellbeing index in Indonesia highlights the urgency of improving financial well-being, especially for young entrepreneurs in the vulnerable startup phase. Within the COR Theory framework, this study analyzes the influence of financial knowledge and financial stress on financial well-being, with fintech use as a mediating variable, among young entrepreneurs in Ponorogo Regency. This quantitative research used purposive sampling to select 161 young entrepreneurs actively utilizing fintech, with data analyzed via PLS-SEM 4.0. The results demonstrate that financial knowledge, financial stress, and fintech use each have a significant positive effect on financial well-being. Additionally, financial knowledge significantly drives fintech use, whereas financial stress has a non-significant positive effect. Furthermore, fintech use successfully mediates the impact of financial knowledge on financial well-being but fails to mediate the effect of financial stress. This research implies that young entrepreneurs must optimize fintech services to gain better financial control and simplify cash flow management, which ultimately improves long-term financial wellbeing.

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