The dilemma of millennial Muslims towards financial management: an Islamic financial literacy perspective

Abstract

Purpose This study aims to empirically investigate the pathway to financial management behavioural intentions (FMBI) from Islamic perspectives, through dimensions of Islamic financial literacy (IFL; Islamic financial knowledge [IFK], financial skills [FS] and self-efficacy [SE]) based on an extension to the theory of planned behaviour (TPB) model. Design/methodology/approach Data was collected via a self-administered questionnaire by 300 millennials (Muslims) working in Malaysia. Structural equation modelling was used for data analysis purposes by using SmartPLS. Findings The results present the positive and significant influence of IFK on financial attitude (FA), FS on the elements of FA, subjective norm (SN), perceived behavioural control (PBC) and perceived moral obligation (PMO), SE on FA, FS on the elements of FA, SN and PBC. Furthermore, PBC and PMO were strong predictors of FMBI from an Islamic standpoint. Originality/value The findings successfully contribute to the theoretical extension of the TPB model via dimensions of IFL (IFK, FS and SE) as predictors of FA, SNs, PBC and PMO. Besides, this study provides some new insights of millennial Muslims concerning IFL and financial management from Islamic beliefs.

A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

“…Referring to the opinion of Osman et al (2023), the subjective norm for Islamic bank clients is the intention to use Islamic bank products due to encouragement from those around them. Rapi and Kassim (2023) discovered that subjective norms affect Islamic banks’ buying intentions and customer decisions.…”

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“…Other supporting theories, such as the social identity theory, the cognitive dissonance theory and the Islamic ethics and morality theory, reinforce the theory of planned behaviour. According to the theory of planned behaviour, a person’s behaviour is influenced by attitudes, subjective norms and perceived behavioural control (PBC) (Osman et al , 2023). In the context of Sharia compliance, attitudes toward Sharia principles and social group norms support customers’ perceptions of the ability to comply with Sharia principles.…”

Antecedents of Islamic welfare: productivity, education, and the financial aspect

“…Islamic financial literacy is defined as the extent to which individuals have the knowledge, awareness and skills to understand the basis of Islamic financial information and services, as well as the ways these factors influence their attitudes when making Islamic financial decisions (Antara et al , 2016). From a broader perspective, Islamic financial literacy also promotes an understanding of social care, for example, through the payment of zakat as a moral obligation (Osman et al , 2023) to elevate social well-being. Therefore, Islamic financial literacy also aims to encourage increased prosperity (Abdullah et al , 2017; Dinc et al , 2021).…”

Developing Islamic financial literacy in improving Islamic financial behavior towards the financial well-being of MSMEs: The moderating effect of e-payment usage

“…The existence of Islamic financial literacy will strengthen the foundation of ethics and morality in financial management towards prosperity. Islamic financial literacy has three dimensions: knowledge of Islamic finance, financial skills, and self-efficacy (Osman et al, 2023). Islamic financial knowledge explains how any business or transaction involving wealth must be conducted according to Islamic principles (Rahim et al, 2016), especially prohibitions on gambling, interest, and uncertainty.…”