THE IMPORTANCE OF ISLAMIC FINANCIAL LITERACY IN CONTEMPORARY SOCIETY: A CASE STUDY OF PERSONAL FINANCIAL MANAGEMENT BEHAVIOR Iqbal Maulana El
Airlangga University
Abstract
Islamic finance is an important aspect of the lives of Muslim communities around the world. The basic concept of Islamic finance is to ensure that all financial transactions and investments conform to Islamic principles. Today, with the rapid growth of the Islamic finance industry, Islamic financial literacy has become an increasingly important subject. However, Islamic financial literacy in contemporary society is often still low. Therefore, this study aims to understand the importance of Islamic financial literacy in contemporary society and see its impact on personal financial management behavior.
This research uses qualitative methods with case studies as the main approach. The data was collected through in-depth interviews with individuals who have a diverse understanding of Islamic finance. In addition, data are also obtained from related literature, surveys, and relevant statistical analyses.
1. Islamic Financial Literacy is Key to Financial Awareness: This study shows that Islamic financial literacy is key to raising awareness about halal finance and investment in contemporary society. Respondents who have a better understanding of Islamic finance principles tend to be more careful in choosing financial products and investments that are in accordance with their beliefs.
2. Positive Impact Awareness: The results of this study also show that Islamic financial literacy can influence personal financial management behavior in a positive way. Individuals who understand the concept of Islamic finance are more likely to avoid interest-bearing debt, make sustainable investments, and support social finance initiatives.
3. Challenges and Barriers: The study also identifies challenges and barriers in improving Islamic financial literacy, including lack of easily accessible educational resources, lack of accessibility of Islamic financial products, and lack of correct understanding of Islamic finance concepts.
This research has important implications in promoting Islamic financial literacy in contemporary society. By increasing people^s understanding of Islamic finance principles, we can help individuals to make wiser financial decisions, in accordance with their religious values, and ultimately, create a more sustainable and financially ethical society.
In an increasingly connected and complex contemporary society, Islamic financial literacy is becoming increasingly important. This case study highlights that a better understanding of Islamic finance can contribute to wiser and ethical personal financial management behaviors. Therefore, steps need to be taken to improve Islamic financial literacy through education and accessibility of financial products that are in accordance with Islamic principles. This will help contemporary society to achieve their financial goals in a way that is in line with their beliefs.
Keywords: Financial Literacy, Personal Finance, Islamic Finance Principles
