The Role of Locus of Control in the Relationship Between Financial Literacy and Lifestyle on Financial Management

This study aims to determine the profile of financial literacy, lifestyle, locus of control, and financial management among employees of the Community and Village Empowerment Agency (DPMD) of Muaro Jambi Regency, as well as to identify and analyze the influence of financial literacy and lifestyle on financial management through the locus of control among employees of the Community and Village Empowerment Agency (DPMD) of Muaro Jambi Regency. The study employs a descriptive-verificative research design. This study employed the PLS analysis method. Based on the research findings, it can be concluded that, descriptively, the levels of financial literacy, lifestyle, locus of control, and financial management among employees of the Community and Village Empowerment Agency (DPMD) of Muaro Jambi Regency fall into the “good” to “rational” categories. Inferential analysis indicates that financial literacy and lifestyle have a positive and significant effect on locus of control, and all three (financial literacy, lifestyle, and locus of control) have a positive and significant effect on financial management. Furthermore, locus of control was found to mediate the relationship between financial literacy and lifestyle on financial management; thus, it can be concluded that improving financial literacy and maintaining a healthy lifestyle will strengthen locus of control, which ultimately enhances employees’ financial management capabilities.