Islamic Financial Literacy: A Conceptualization and Proposed Measurement

Abstract

This paper aims to scrutinize the concept of Islamic financial literacy and propose the suitable items for its measurement. Design/methodology/approach: An exploratory study is conducted due limited existing research works are available in the area of Islamic financial literacy. The items for measurement of Islamic financial literacy in this paper consider a number of significant features of Islamic finance. Findings: A proposed measurement items of Islamic financial literacy have been developed. Several questions are constructed and grouped namely the money basics, Islamic banking, Takaful and Shariah-compliant investments.Research implications: This study attempts to contribute towards acquiring new theoretical models, especially in suggesting items to measure the level of Islamic financial literacy and personal financial behavior. Practical implications: The expected outcomes from this research will highlight an idea to the Islamic financial literacy and also act as a tool in order to improve the financial behavior as guided by Shariah. Originality/value: This study is the first of this kind to advocate the items for measurement of Islamic financial literacy level by developing test questions consist of these four main aspects in Islamic finance and four elements to be measured in personal financial behavior.

Islamic Financial Literacy in Mathematics Education: Proposed Design for Instruction

“…For conformity with the mathematical concept, we chose 'social arithmetic' material, which is material that has room to be integrated with IFL based on the current curriculum. Meanwhile, on the Islamic economic aspect, we refer to the opinion of Nawi [7], which limits that IFL is related to Islamic banking products. Therefore, we limit the framework to several contexts of banking products with mudharabah, musyarakah, and murabahah contracts.…”

“…We refer to the OECD [3] content domain of financial literacy to develop the MIFL framework. By referring to several studies on IFL [7,11], we outline some contexts of IFL issues relevant to the junior high school curriculum. We have discussed the development of this framework in another paper that also involves an expert review.…”

Islamic financial literacy scale: an amendment in the sphere of contemporary financial literacy

“…However, the result showed a bias between the genders in terms of three items. Nawi et al (2018) investigated the IFL concept and suggested appropriate items for its measurement. The result of the study showed the development of the proposed measurement items of IFL as well as the construction of various questions related to Islamic banking, money basics, Sharīʿah-compliant investments and tak aful.…”

Model Niat Untuk Berjaya Dalam Kalangan Perusahaan Kecil Sederhana Muslim: Tinjauan Berdasarkan Kepada Pendekatan Teori Kelakuan Terancang (Tpb)

“…Pengkaji dari Brunei Abdullah &Abdul Razak (2015) pula mengkaji peranan literasi kewangan Islam di Brunei menerusi pengukuran terhadap elemen kefahaman kewangan Islam seperti zakat, wakaf, faraid pelaburan patuh syariah yang mendapati bahawa LKI berada sekitar 33%-60% berbeza-beza mengikut pengukuran. Pembangunan elemen pengukuran terus dilakukan oleh beberapa sarjana bagi menentukan kaedah pengukuran yang sesuai untuk menilai LKI seperti yang dikaji oleh Antara et al (2015); Antara et al (2016b); Antara et al (2017); Hidajat &Hamdani (2015); Hidajat &Hamdani (2017); Nawi et al (2018); Setiawati et al (2018). Kajian di Turki pada tahun 2017 yang mengukur LKI menunjukkan tahap LKI berada di tahap 58% (Er & Mutlu, 2017).…”