Siti Sri Wulandari, Muhlisin Muhlisin, Mohd Lizam, Suci Rohayati
People possess knowledge related to financial management, evaluating the quality of goods, and identifying needs, making economic literacy a crucial factor in shaping consumption behavior influenced by lifestyle demands. Income also plays an important role in determining consumption decisions. This study examines the influence of economic literacy on lifestyle, consumption patterns, and consumption behavior, with income level acting as a moderating variable. A quantitative approach using the WarpPLS. Data were collected through questionnaires distributed to 200 young entrepreneurs of productive age in Malang and Surabaya, Indonesia. The sampling technique used was convenience simple random sampling, where participants were selected randomly regardless of population strata. The results show that higher economic literacy tends to simplify lifestyle, encourage more efficient consumption patterns, and reduce excessive consumption behavior. The role of income level as a moderator weakens the relationship between economic literacy and both lifestyle and consumption patterns, while it does not significantly moderate the relationship with consumption behavior. These findings suggest the need to improve individuals’ understanding of economic principles, budgeting practices for managing family responsibilities, and aligning lifestyle with actual income. Although income affects consumption, it does not necessarily enhance or diminish the role of economic literacy in daily consumer decision-making. © 2026, SRAC-Romanian Society for Quality. All rights reserved.
Faculty of Economics and Business, Universitas Negeri Surabaya, Surabaya, 60231, Indonesia; Faculty of Technology Management & Business, Universiti Tun Hussein Onn Malaysia, Johor, 86400, Malaysia
