Level Of Islamic Financial Literacy Research Articles

ENHANCING ISLAMIC FINANCIAL LITERACY IN INDONESIAN YOUTH GENERATES BROADER SOCIETAL BENEFITS

Indonesia, with a predominantly Muslim population, exhibits low levels of financial literacy and Islamic financial literacy, despite a growing interest in Islamic banking. This research focuses on evaluating the financial literacy of young Indonesians and its relationship with Islamic financial literacy policies. The quantitative approach, based on a survey of 70 respondents, reveals that the youth in Indonesia possess moderate financial literacy and Islamic finance knowledge. Government policies, primarily centered around personal learning and online education, demonstrate limited efficacy in improving financial literacy among the youth. The study suggests that the low level of Islamic financial literacy cannot be solely attributed to existing policies, as other external factors play a significant role. The research emphasizes the need for a more comprehensive understanding of the multifaceted influences on the relationship between Islamic financial literacy and societal outcomes in Indonesia.

The Influence of Islamic Financial Literacy, Islamic Financial Inclusion, and Financial Behavior on the Investment Decisions of Generation Z in West Java

The largest number of Generation Z in Indonesia has potential for economic development. This is because the younger generation possesses high levels of technological skills, making them promising investors and key drivers in advancing investment growth in Indonesia. This research aims to analyze the levels of Islamic financial literacy and inclusion and their influence on financial behavior and investment decisions using descriptive analysis and the SEM-PLS method. The research results indicate that the average level of Islamic financial literacy was 77.9% (well-literate) and the level of Islamic inclusion was 80.5% (high). Islamic financial literacy and Islamic financial inclusion significantly affect investment decisions while financial behavior does not significantly affect investment decisions. This study contribute to enhance the index of literacy and financial inclusion in sharia finance for the younger generation, as well as promoting participation in sustainable investments oriented towards sharia principles.

Effects of Islamic Financial Literacy, Financial Inclusion, Motivation, and Disposable Income on Investment by Millenials in Islamic Capital Market

The purpose of this study was to determine the effect of the level of Islamic financial literacy, financial inclusion, motivation, and disposable income on the interest of Jakarta's millennial generation in investing in the Islamic capital market. The population in this study is people who live in DKI Jakarta, with an age range of 21-39. This study uses the Slovin formula to determine the number of samples and shows that a minimum of 100 respondents is needed. The data analysis technique used is Structural Equation Model-Partial Least Square (SEM-PLS) with the help of SmartPLS3 software. Based on the results of the analysis of this study, it was found that the variables of financial inclusion and motivation had a positive and significant effect on investment interest in the Islamic capital market. While the variables of Islamic financial literacy and disposable income have no significant effect on investment interest in the Islamic capital market.

The Level Of Islamic Financial Literacy And Islamic Financial Inclusion Of Students In The Islamic Capital Market

The purpose of this study was to determine the level of Islamic financial literacy and Islamic financial inclusion of students in Bengkulu Province, especially in Islamic capital market financial institutions. research methods with a quantitative approach survey method and data obtained through questionnaires given to 258 students in Bengkulu province who have a Sharia Investment Gallery. the results showed that the majority of Islamic financial literacy levels were at a moderate level (49%), as well as the slamic financial inclus level at a moderate level (45%).

INTEREST OF STUDENT FEBI IAIN FATTAHUL MULUK PAPUA STUDENT INTEREST IN SAVING IN SHARIAH BANK

This study aims to examine and analyze the interest in saving in FEBI IAIN Fattahul Muluk Papuan students in Islamic banks. Islamic campus students tend to use services or services from Islamic banks, this is due to the level of Islamic financial literacy that has grown during their studies and is followed by adequate Islamic financial inclusion found in the campus environment. Papua province in 2022 Islamic financial literacy is 45.19% followed by Islamic financial inclusion of 76.36%. It is recorded that in 2022 students who have accounts at Islamic banks account for 90% of the total students as a whole however, there is a decrease every year, moreover there are problems with the customer data security system. This study used a quantitative method with an explanatory research approach and was analyzed using SmartPls version 3. The study population was all FEBI students by distributing questionnaires to 75 respondents who already had accounts at Islamic banks. The results of the study show that there are 2 important variables that can explain the factors of student interest in saving at Islamic banks, including Islamic financial literacy and Islamic financial literacy. These two variables have a positive and significant effect on students' interest in saving at Islamic banks. This study recommends that all parties, both government agencies and campuses, continue to educate the public about sharia financial products and shariah financial management, especially in the millennial generation, to further increase Islamic financial inclusion so that all parties are capable of accessing finance.

Digital Transformation of Bank Syariah Indonesia Services and Its Impact on Financial Inclusion

Islamic financial inclusion is the openness of providing access and use of a variety of convenient and affordable financial services by sharia. In supporting the realization of the Sharia financial inclusion target and the Indonesian Sharia Banking Development Roadmap (RPSI) for 2020-2025, Bank Syariah Indonesia strives for customer convenience and comfort by providing access to various products and services digitally. The research method uses a type of qualitative descriptive research with a library research method. The types of data used are primary data and secondary, primary data obtained from BSI's official website and result reports, secondary data obtained from other people's research, documentation data, and studies relevant to this study. The purpose of the study was to determine 1) the level of financial literacy index and Islamic financial inclusion index in Indonesia. 2) to recognize Bank Syariah Indonesia's efforts in seeking Sharia financial inclusion targets and the Indonesian Sharia Banking Development Roadmap (RPSI) for 2020-2025. The results showed that the level of Islamic financial literacy and inclusion index in 2022 increased to 9.14% and 12.12% from the previous 8.93% and 9.10%

Mataram mosques management: intention to place mosque funds in Islamic banks

Purpose This study aims to examine idle funds in mosques in Mataram City and analyze the intentions of the mosque chairman to place mosque funds in Sharia banks. Six variables are used to analyze the intention; attitudes, subjective norms, behavioral control, sharia financial literacy, sharia banking knowledge and the responsibility of the management for the trust of the society. Design/methodology/approach This research consists of two studies; descriptive research examining idle funds of mosques and correlational research analyzing the intentions of mosque directors to place mosque funds in Sharia banks. Intentions will be analyzed using the theory of planned behavior approach, developed through the PLS-SEM method, and the data obtained from questionnaires through surveys were processed using the SmartPLS 3 application. Findings This study found that the average surplus between income and expenditure reaches IDR2.7m monthly. Also, 75% of mosques have placed their funds in Islamic banks. This study shows a positive relationship between the level of Islamic financial literacy, knowledge of Islamic banking, responsibility for public trust, attitudes toward Islamic banking, subjective norms and behavioral control in influencing the intentions to place mosque funds in Islamic banks. However, only behavioral control is accepted as it significantly influences intentions. Behavioral control means that to maximize intentions, Islamic banks need to make it easier for mosque administrators to place funds. Originality/value This research signifies a pioneering effort in examining idle funds within mosques, particularly those equipped with comprehensive financial reports within Mataram City. Furthermore, it spearheads an inquiry into the intentions of mosques to channel their funds into Sharia banks, underpinned by rigorous quantitative methodologies.

Islamic Financial Literacy and Living Standard of Women in Malaysia

From year to year, Malaysia faces a rising cost of living, with the indicator of consumer price index with the rate has increased on average to 3.9% from 2016 to 2019. Since the emergence of Islamic banking and finance in Malaysia, people have been served with a wide range of Shariah-compliant financial products. Nonetheless, women's financial literacy level is lower than men's, and they are more likely to rely on men for financial affairs. This study aims to assess the level of Islamic financial literacy among Malaysian women and to assess it to their living standards. Besides, it also analyses the effect of demographic factors of women such as age, marital status, education level, and income level on Islamic financial literacy. This study uses purposive sampling with a survey as the instrument to collect the primary data from working women in Malaysia as the target respondents. It examines the data of 156 respondents, all of whom are women, using multiple regression for the data analysis. This study discovers that 82.69 % of women in the study have a high level of Islamic financial literacy. Based on the analysis, it finds that only age significantly influences the level of Islamic financial literacy of women in Malaysia. Next, the result shows that simultaneously all independent variables; age, marital status, education level, and income level, influence Islamic financial literacy. The findings further indicate that women with higher incomes outperform those with lower incomes. This research contributes to enriching the literature on Islamic financial literacy, which is that the empirical studies on women are limited. It also provides insight to the government, industry practitioners in enhancing their roles to improve the Islamic financial literacy of Malaysian women and widen the acceptance of Islamic financial products.

Pengaruh Literasi Keuangan Syariah Terhadap Keputusan Pemilihan Produk Simpanan BMT Rukun Abadi (Studi Kasus Anggota Koperasi BMT Rukun Abadi)

This study aims to investigate the Effect of Sharia Financial Literacy on the Decision to Choose BMT Rukun Abadi Saving Products. This case study focuses on members of BMT Rukun Abadi Cooperative, which is a sharia-based financial institution in Indonesia. Islamic financial literacy is an important factor in encouraging the growth and development of the Islamic financial system. The research method used is a quantitative approach by distributing questionnaires to members of the BMT Rukun Abadi Cooperative. This questionnaire was designed to measure the level of Islamic financial literacy of the members as well as evaluate the decision patterns for choosing deposit products at BMT Rukun Abadi. The results showed that Islamic financial literacy has a significant influence on the decision to choose deposit products at BMT Rukun Abadi. Members of BMT Rukun Abadi Cooperative who have a higher level of Islamic financial literacy tend to be better able to understand the characteristics and benefits of Islamic savings products, so they can make more informed and effective decisions. These findings provide important implications for BMT Rukun Abadi in improving Islamic financial literacy services and education to its members. By improving Islamic financial literacy, members will be more engaged and involved in utilizing the Islamic savings products offered by this financial institution, thus supporting the growth and sustainability of the Islamic financial system in Indonesia.

Analisis Tingkat Literasi Keuangan Syariah Petani Padi Di Desa Sei Penggantungan Kabupaten Labuhanbatu

Sei Penggantung Village, Labuhanbatu Regency, is an underdeveloped village starting to develop. Having the majority of the population working as rice farmers makes farmers during the farming period always need capital, but often in farming activities, farmers are always constrained by money. Farmers always borrow from conventional financial services in the village when there is a shortage of capital. This does not solve the problem but creates a new trial, namely interest-bearing debt, so a new financing system is needed that avoids interest. Islamic financial institutions can be an option for farmers as a source of capital. The aim is to assess knowledge of Islamic finance among farmers. The study was conducted from October 2022 to January 2023. It used four indicators to measure Islamic financial literacy: Islamic savings and loans, basic knowledge of Islamic finance, Islamic investment, and Islamic insurance. A survey method was used to collect data, and a sample of 30 individuals was selected through purposive sampling. Data collection was carried out by interviewing using a questionnaire, and previously the questionnaire items were validated and tested for reliability. Descriptive statistics were used for analysis. The results showed that the level of Islamic financial literacy among rice farmers in Sei Penggantungan Village was low, with an index value of 59.66%. According to the classification of Chen and Volpe (1998), it is included in the low category (<60%). The main factor causing low Islamic financial literacy among farmers is the limited access of rural communities to financial education related to Islamic financial services. This includes understanding the features, benefits, risks, rights, and obligations associated with the service. This drives the lack of public interest in using Islamic financial services causing farmers to continue to rely on moneylenders to find sources of capital.

Pengaruh Literasi Keuangan Syariah Terhadap Perilaku Keuangan Pada Mahasiswa Politeknik Negeri Bandung (Studi Pada Mahasiswa Keuangan Syariah Politeknik Negeri Bandung)


 
 
 
 This study examines the impact of Islamic financial literacy on financial behavior among Islamic finance students at Politeknik Negeri Bandung. The variables analyzed include Islamic financial literacy (X) and financial behavior (Y). A quantitative descriptive approach was used, and data was collected through a questionnaire distributed via Google Forms. The sample consisted of 256 students from the Islamic Finance Study Program, with a calculated sample size of 156 using the Slovin formula and a 0.05 error rate. The relationship between the variables was analyzed using simple linear regression with SPSS software version 25. The findings reveal that the level of Islamic financial literacy among Politeknik Negeri Bandung students is relatively good, with an average score of 12.5 out of 19. Islamic financial literacy explains 5.6% of financial behavior, while the remaining 94.4% is influenced by other variables beyond the scope of this study. The data analysis resulted in a significance value of 0.002, indicating that Islamic financial literacy has a positive and significant impact on the financial behavior of Islamic Finance Study Program students at Politeknik Negeri Bandung.
 Keywords: Islamic financial literacy, Islamic financial behaviour
 
 
 

The Role of Financial Behavior, Financial Stress, and Financial Well-Being in Explaining Islamic Financial Literacy among University Students

Objective – The objectives of the study are to assess the level of students’ knowledge of Islamic finance and examine their financial behavior (FB), financial stress (FS), and financial well-being (FWB). Methodology – The study applies a quantitative research method with primary data collection using a non-probability convenience sampling technique. The questionnaires were distributed to 155 students, including undergraduate and postgraduate students. Findings and Novelty –The study concludes that only the financial well-being hypothesis was supported, meaning that financial well-being influences the level of Islamic financial literacy (IFL). The study contributes to the various stakeholders. For the government authority, this study can be a reliable benchmark for the level of Islamic financial literacy among university students. For the university authority, this study helps the university assess students’ Islamic financial literacy level. For the Islamic financial industry, it tells what needs to be improved by the community members. Moreover, this study contributes to the existing literature on Islamic financial literacy. The study also recommends future research to study other variables related to Islamic financial literacy and include a wider sample from different universities. Type of Paper: Empirical JEL Classification: I22, M29, O16 Keywords: Islamic financial literacy; financial behaviors; financial stress; financial well-being Reference to this paper should be made as follows: Doloh, A; Redzuan, N.H. (2023). The Role of Financial Behavior, Financial Stress, and Financial Well-Being in Explaining Islamic Financial Literacy among University Students, J. Fin. Bank. Review, 8(1), 43 – 57. https://doi.org/10.35609/jfbr.2023.8.1(2)

Enhancing Student Engagement With Indonesian Sharia Banking: The Role Of Sharia Financial Literacy

The purpose of this study was to find out and analyze the influence of the level of Islamic financial literacy on the interest in using Bank Syariah Indonesia products. This study uses quantitative research with associative types. The data collection technique uses a questionnaire with a population of all Islamic banking students class of 2021, Faculty of Economics and Islamic Business, UIN Syarif Hidayatullah Jakarta. The sampling technique used purposive sampling with the criteria of students who did not have accounts at Islamic banks, namely as many as 67 people. The analysis technique used is simple regression analysis with the help of SPSS version 20 software. The results showed that first, Islamic financial literacy level has a positive and significant effect on students' interest in using Islamic bank products with a tcount of 7.964 (> 1.99714) and a significance value of 0.000 (<0.05).The coefficient of determination (R2) is 0.494 which means that the ability of Islamic financial literacy to explain students' interest in using Islamic bank products is 49.4%. Second, the better the Islamic financial literacy level of a student, the higher the interest in using products at Islamic banks. Thus, Islamic financial literacy is needed with high intensity so that it provides benefits for students and the wider community.

THE INFLUENCE OF FINANCIAL LITERACY AND PROMOTION LEVEL ON THE INTEREST IN USING ISLAMIC BANK PRODUCTS IN STUDENTS OF UIN SUNAN GUNUNG DJATI BANDUNG

AbstractThis research was motivated by the significant use of Islamic bank products for UIN Sunan Gunung Djati Bandung students. This paper aims to determine the influence of financial literacy and promotion on interest in becoming a Sharia bank customer for UIN Sunan Gunung Djati Bandung students. The use of methods used in this study is quantitative research methods and surveys. The population in this study was 29,350 students of UIN Sunan Gunung Djati Bandung , and a sample of 88 respondents was obtained. The sampling technique uses clusters. Data collection method by questionnaire. The results revealed that the level of Islamic financial literacy had a significant value of 0.000 < 0.05 and had a positive and significant effect on public interest in saving at Islamic banks. In contrast, promotions of 0.061 > 0.05 so that it had no effect and was not compelling to people's interest in saving at Islamic banks.Keywords: Financial Literacy, Promotion, Interest, and Islamic Bank.

Keputusan Menjadi Nasabah Bank Syariah: Peran Literasi Keuangan Syariah, Kepercayaan, dan Citra Bank Syariah

Islamic banks in Indonesia have existed in Indonesia for three decades. However, until now the development is not very significant. Even though Muslims are the majority population in Indonesia. The purpose of this study was to investigate how three factors - Islamic financial literacy, trust in Islamic banks, and the image of Islamic banks - impact the decision to become a customer of Islamic banks. The research employed a quantitative approach and explanatory research to collect primary data from 200 respondents with diverse backgrounds through questionnaires. The study found that a higher level of Islamic financial literacy can motivate individuals to choose Islamic banks as customers. This finding highlights the importance of enhancing public awareness and understanding of Islamic finance. Additionally, the trust and image of Islamic banks were identified as critical factors affecting customers' decisions. Therefore, it is vital for Islamic banks to maintain high levels of professionalism to sustain customer trust and present a positive image.

Analisis Faktor-Faktor yang memengaruhi Literasi Keuangan Syariah Karyawan Lembaga Keuangan Syariah:


 According to the results of a literacy survey conducted by the OJK, the level of literacy and public understanding of Islamic financial products and services is still low, even though in order to properly implement sharia principles, practitioners of Islamic financial institutions (LKS) need to have good Islamic financial literacy, especially employees of institutions. Islamic finance because apart from being a service provider, it also plays a role in educating customers in understanding the products offered. This is the background of the author to analyze how the level of Islamic financial literacy of employees of Islamic financial institutions and the factors that influence it. This research was conducted at KSPPS Baytul Ikhtiar. The population in this study was 367 with a sample of 232 respondents. Data collection techniques were taken by survey method through two instruments, namely questionnaires and interviews. The data analysis carried out was descriptive analysis, data quality test, classical assumption test and multiple linear regression analysis. The results of this study indicate that the level of Islamic financial literacy of KSPPS Baytul Ikhtiar employees is in the medium category, the financing aspect is in the high category, and the basics of Islamic finance is in the medium category. in the aspect of savings, insurance and sharia investment into the low category. From the results of Multiple Linear analysis, the variables of religiosity and gender have no effect on Islamic financial literacy. Variables of work experience, education level and Islamic Financial Training have a significant effect on Islamic financial literacy. Then the results of the simultaneous test (F) show that the variables of religiosity, gender, work experience and education level together have a significant effect on Islamic Financial Literacy for Baytul Ikhtiar KSPPS employees.
 Keywords: Islamic Financial Literacy; Islamic Financial Institutions; Sharia Financial Inclusion

Islamic Financial Literacy to Support Islamic Banking Human Resources

This study aims to determine and analyze the knowledge, beliefs, and skills of Islamic banking human resources in Makassar city at the Well Literate, Sufficient Literate, Less Literate, and Not Literate levels. The research approach uses quantitative research with the data source used is primary data. The research population was Islamic bank employees in Makassar city with a sample of 71 employees. The method used is the structural equation method and measurement model. The analysis methods used are validity and reliability tests, data analysis, descriptive analysis with knowledge (X1), beliefs (X2), and skills (X3) variables. The analytical tool used in this research is Confirmatory Factor Analysis (CFA) used in analyzing indicators that have been grouped based on their latent variables (constructs) with the variables of knowledge (X1), beliefs (X2), and skills (X3) the data is processed using the Amos 20 program. The conclusion that the level of Islamic financial literacy of Islamic bank HR in Makassar city is obtained on the knowledge variable with an average value of 75% at a moderate level or at the Sufficient Literate level. The belief variable from the analysis results shows that the average value of 82% indicates that Islamic banking human resources have a high level of Islamic financial literacy or at the Well Literate level. The skill variable from the analysis results shows that the average value is 80%, this variable also shows a high level of Islamic financial literacy or at the Well Literate level.

PENGARUH LITERASI KEUANGAN SYARIAH TERHADAP MINAT MAHASISWA MENGGUNAKAN PRODUK PAYLATER NON SYARIAH

The study aims to determine the effect of Islamic financial literacy level on interest in using non-sharia PayLater products. The type research is quantitative research. The data collection technique used questionnaire distributed online to students of the State Polytechnic of Malang accounting department class of 2018-2021. The sampling technique used nonprobability sampling, as many as 95 people. The data analysis of this study was Simple Linear Regression Analysis by using SPSS version 26 software. The results of this study showed that the level of Islamic financial literacy had no effect on students' interest in using non-sharia PayLater products with a t count of -242 (<1.989) and a significance value of 0.809 (>0.05). The value of the coefficient of determination (R2) is 0.001, which means that the variable ability of islamic financial literacy levels in explaining students' interest in using non-sharia PayLater products is 0.1%.

Strategies For Improving The Sharia Financial Literacy Index In The Millenial Generation In Indonesia

This study aims to analyze the Islamic financial literacy index and strategies to increase the Islamic financial literacy index in the millennial generation because based on data released by the OJK through the 2019 National Financial Literacy and Inclusion Survey that the level of Islamic financial literacy is relatively low at 8.39%. The methodology in this study is to use qualitative research with a library approach by analyzing the results of a survey conducted by OJK relating to Islamic financial literacy. The results of this study explain that the Islamic financial literacy index for the millennial generation is low so several strategies are needed to increase the Islamic financial literacy index, namely strategies to educate and socialize the importance of Islamic finance in financial management for millennials through social media, strategies for government participation in increasing Islamic financial literacy, strategies for collaboration between the government and educational institutions in providing easy access to Islamic finance with programs for the millennial generation, strategies for utilizing influencer marketing in marketing Islamic banking products and services, and strategies for increasing the Islamic financial literacy index through the participation of Islamic financial institutions by providing rewards for the millennial generation who have utilized sharia financial products and services.

The Effect of Radio Broadcasting, Nganggung Traditional, Local Influencer, and Education to Sharia Financial Literation’s Level of Central Bangka’s Society

This research was conducted to see the influence of Radio Broadcasts, Traditional Singing, Local Influencers, and Education on the Level of Islamic Financial Literacy in the People of Central Bangka. This type of research is a quantitative study using the regression analysis model. To measure the dependent variable indicators the ordinal scale is used (0-1), and the independent variables are using the Likert scale (1-4). The results of this study indicate that the results of simultaneous testing show that all variables have a significant effect on Islamic financial literacy. This can be seen from the results of the Chi-Square test. However, in the significance test, one of the variables was not significant, namely education, only 3 variables had a significant effect, namely radio broadcasts, local influencers, and culture (nganggung). Based on these statistical results, it can be understood that through radio broadcasts with sharia economic programs, the public gets important information about this matter. Likewise, influential figures such as traditional leaders, community leaders, and religious leaders who have adequate sharia economic insight will contribute to increasing sharia economic literacy. Through the Nganggung Culture, the community will receive this information more quickly.