This study proposed a nuanced approach to the association between job insecurity and financial stress by examining whether financial well‐being mediates the established association. In addition, we examined whether the association between the job insecurity and financial stress, through financial well‐being, is moderated by income. For this study, we conducted a path analysis using 1,145 survey respondents. Results revealed a significant relationship between the job insecurity and financial stress and a partial mediation effect of financial well‐being. Moreover, the indirect effect of job insecurity on financial stress through financial well‐being was moderated by income. Although people who have higher financial well‐being were more likely to have lower financial stress, this relationship varied by income such that it was stronger for higher income groups than for lower income groups. Our findings provide insights into the way job insecurity and financial well‐being influence financial stress. This study will help the researchers and practitioners develop more effective and adaptive intervention programmes and resources for individuals and families. Implications for practice and directions for future research are discussed.