The impact of the digitalization of the financial mathematics module on budgetary governance through financial literacy: The readiness of prospective education managers
Abstract
Purpose – Budget management in Islamic educational institutions still faces significant challenges in the form of the low level of financial preparedness among prospective education managers, a gap that has not yet been adequately bridged by digital-based financial mathematics education; consequently, research that integrates the digitization of modules, financial literacy and budget management within a single structural model remains necessary. This study examines the role of the digitalization of Financial Mathematics modules in the budget management competencies of prospective education managers, as well as examining financial literacy as a mediating mechanism linking the digitalization of modules to budget management competencies.
Method – The study employed a quantitative approach, an explanatory design, and cross-sectional data collection using total sampling (a census) of students who met the inclusion criteria. Data were collected in August 2026 from 72 fifth-semester students (out of a population of 110 students) on the Islamic Education Management programme at UIN Sulthan Thaha Saifuddin Jambi who had used the ‘Financial Mathematics’ digital module and had complete data, via a 24-item Likert-scale questionnaire that had been tested for convergent validity, discriminant validity and reliability. This sample size met the minimum threshold of the priori statistical power analysis (68 respondents). The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4, including an evaluation of the measurement model and structural model, as well as mediation testing based on bootstrapping.
Findings – The digitisation of the Financial Mathematics module proved to be a key driver of improvements in both financial literacy and budgetary management competence amongst prospective education managers, with a strong direct effect on both constructs (β = 0.438; p < 0.001 and β = 0.455; p < 0.001). Financial literacy also contributes positively to budgetary management competence (β = 0.239; p = 0.033) and acts as a mediating mechanism, albeit partially, in the relationship between the digitisation of the module and this competence (β = 0.105; p = 0.049), indicating that mastery of financial concepts alone is insufficient without their application in budgeting practice. The model explains 19.2 per cent of the variance in financial literacy and 36.0 per cent of the variance in budgetary management competence.
Implications – These findings provide theoretical implications for the development of a mediation-based financial-managerial readiness model, as well as practical implications for strengthening the Financial Mathematics curriculum and budgetary management policies in Islamic educational institutions.
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