Financial Self-Efficacy as a Mediator of Financial Literacy and Consumption Adaptation on Household Economic Resilience during Regional Inflation

Idhafiyyah Anwar (Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda)

MUQADDIMAH: Jurnal Ekonomi, Manajemen, Akuntansi dan Bisnis
Article in Press

Regional inflation increases pressure on households' ability to maintain economic stability, particularly in regions experiencing rapid economic transformation. Although financial literacy and consumption adaptation have been widely recognized as important determinants of household economic resilience, previous studies have largely examined these factors independently, providing limited empirical evidence regarding the psychological mechanism through which they strengthen household resilience under heterogeneous regional inflation. This study aims to examine the effects of financial literacy and consumption adaptation on household economic resilience and to investigate the mediating role of financial self-efficacy among households in the buffer region surrounding Indonesia's New Capital City (Ibu Kota Nusantara, IKN). A quantitative survey was conducted involving 400 households, and the data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that financial literacy, consumption adaptation, and financial self-efficacy each exert positive and significant effects on household economic resilience. Furthermore, financial self-efficacy partially mediates the effects of financial literacy and consumption adaptation on household economic resilience. These findings demonstrate that household economic resilience is shaped by the interaction of cognitive capability, adaptive behavior, and psychological confidence in responding to regional inflationary pressures. This study contributes to the household finance literature by developing and empirically examining an integrated explanatory framework that incorporates financial literacy, consumption adaptation, and financial self-efficacy to explain household economic resilience under regional inflation. The findings also provide practical implications for policymakers in designing integrated financial education and household empowerment programs aimed at strengthening financial capability, adaptive consumption behavior, and financial self-efficacy to improve household resilience against future economic shocks.