The Level of Financial Literacy among Muslim Millennial Students

Millenials, also known as Generation Y, are a demographic cohort who were born between early 1980’s and late 1990’s and are reportedly to be active users of FinTech. At the same time, recent research documents the problems Millenials are prone to inadequate financial knowledge, an unsatisfactory current financial situation, and misuse of retirement accounts. The last segment is particularly very important since life expectancy today is rising, while pension and social welfare systems are being strained. In this paper we examine the level of financial literacy among millennial students who at the same time active users of financial technology. The data was collected via questionnaire distribution to International Islamic University Malaysia (IIUM) students in the campus. From all collected responses 217 which matches the research criteria such as students who belong to Millennial generation were selected for analysis. To measure financial literacy level, we use the “Big Three” method designed by Lusardi and Mitchell (2011). In our study where respondents are university students, findings suggest that 47% out of all 217 respondents has a satisfactory level of financial literacy. The level of financial literacy is higher among post-graduate students and engineering students. Mobile payment users comprise 64% of respondents and only 24% among them is financially literate. It is also noteworthy that 93% of respondents do not have a retirement account. These findings are very important since the study is conducted in a university environment where 100% of the respondents are involved in higher education. It is crucial to teach finance subjects in all faculties and there is a dire need to establish an institution which will regularly conduct a nationwide survey to access the level of financial literacy and financial behaviour of youth to avoid the financial collapse of Generation Y.

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Living beyond one’s means: evidence from Malaysia

International Journal of Social Economics ◽

10.1108/ijse-11-2013-0248 ◽

2015 ◽

Vol 43 (1) ◽

pp. 2-18 ◽

Cited By ~ 5

Author(s):

Yiing Jia Loke

Keyword(s):

Low Income ◽

Financial Literacy ◽

Financial Distress ◽

Financial Management ◽

Practical Knowledge ◽

Financial Education ◽

Financial Knowledge ◽

Content Type ◽

Explanatory Variables ◽

Financial Behaviour

Purpose – The purpose of the paper is to identify the determinants of the probability of living beyond one’s means. The paper also explores the coping mechanisms of those financially distressed as well as the debt taking behaviour of consumers. Design/methodology/approach – The study uses data obtained from the OECD International Network on Financial Education pilot study on Measuring Financial Literacy in 2010 for the case of Malaysia. A logistic regression model is used to identify the main determinants of the probability that a consumer will live beyond his/her means. The analysis is carried out by using a set of socio-economic factors and the individual’s financial behaviour and attitudinal characteristics as explanatory variables. Findings – The findings indicate that low income and seasonal income earners are more vulnerable to financial distress. Furthermore, having a higher education, higher financial knowledge and prudent financial behaviour and attitude do not necessarily translate into better financial management. Family and friends provide the main source of financial assistance in times of need. Research limitations/implications – The assessment of financial knowledge should go beyond individual’s knowledge on financial concepts and theories. Practical knowledge on financial and cash flow management should be assessed. Practical implications – The study reiterates the importance of financial education. It is imperative to include financial education as part of the schools’ curriculum and also to be incorporated as part of the Continuous Professional Development modules for working adults. Originality/value – The study is based on the first nationwide study of consumer finances in Malaysia. It contributes to the literature by integrating financial behaviour and attitudinal factors into the analysis of the ability of individuals to live within their means. The findings also show the limitations of the existing self-assessment of financial behaviour and attitude and the assessment of financial knowledge.

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Some Insights Into Financial Literacy Among Undergraduate Students: A Case of Bosnia and Herzegovina

International Journal of Financial Research ◽

10.5430/ijfr.v12n3p103 ◽

2021 ◽

Vol 12 (3) ◽

pp. 103

Author(s):

Jasmina Okicic ◽

Meldina Kokorovic Jukan ◽

Mensur Heric

Keyword(s):

Undergraduate Students ◽

Financial Literacy ◽

Sampling Technique ◽

Financial Education ◽

Financial Knowledge ◽

Financial Behavior ◽

Financial Attitudes ◽

Significant Difference ◽

Financial Behaviour ◽

The Relationship

The purpose of this research is to provide some insights into financial literacy among undergraduate students focusing primarily on the relationship between financial knowledge, financial attitudes and financial behavior and on possible gender and financial education gap in financial literacy. Using the purposive sampling technique, data collection was carried out from April to June 2020, yielding a sample of 1,046 valid responses. To gain a better understanding of the relationship between financial behaviour, financial attitudes and financial knowledge, we, primarily, use exploratory factor analysis and multiple regression model. The research findings have revealed several important issues. First, findings have suggested that financial knowledge, financial attitudes and gender may be considered as an antecedent of the financial behaviour of undergraduate students. Second, findings have also suggested a statistically - significant difference between the financial literacy of undergraduate students concerning their exposure to formal financial education.

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The Mediating Effect of Money Attitude on Association Between Financial Literacy, Financial Behaviour, and Financial Vulnerability

International Journal of Academic Research in Business and Social Sciences ◽

10.6007/ijarbss/v10-i15/8254 ◽

2020 ◽

Vol 10 (15) ◽

Author(s):

Mohamad Fazli Sabri ◽

Husniyah Abd Rahim ◽

Rusitha Wijekoon ◽

Nurul Fardini Zakaria ◽

Amirah Shazana Magli ◽

...

Keyword(s):

Financial Literacy ◽

Mediating Effect ◽

Financial Vulnerability ◽

Financial Behaviour ◽

Money Attitude

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Financial Literacy and Financial Behaviour: Experimental Evidence from Rural Rwanda

The Economic Journal ◽

10.1111/ecoj.12217 ◽

2015 ◽

Vol 126 (594) ◽

pp. 1571-1599 ◽

Cited By ~ 32

Author(s):

Aussi Sayinzoga ◽

Erwin H. Bulte ◽

Robert Lensink

Keyword(s):

Experimental Evidence ◽

Financial Literacy ◽

Financial Behaviour

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The Effect of Islamic Financial Literacy and Financial Inclusion toward Financial Planning among Millennial: Financial Behaviour as an Intervening Variable

International Journal of Emerging Issues in Islamic Studies ◽

10.31098/ijeiis.v1i2.762 ◽

2021 ◽

Vol 1 (2) ◽

pp. 60-67

Author(s):

Lusiana Handayani ◽

Basyirah Ainun ◽

M. Yassir Fahmi

Keyword(s):

Financial Literacy ◽

Financial Planning ◽

Quantitative Research ◽

Living Condition ◽

Financial Inclusion ◽

Survey Method ◽

Last Stage ◽

Financial Behaviour ◽

Two Stages ◽

The Relationship

Islamic financial literacy and financial inclusion are important for improving the living condition of people. Combination of Islamic financial literacy understanding and high financial inclusion index will affect the behavioral ability of people in making financial planning. In Indonesia, Islamic financial literacy and inclusion are still low, not only for youngsters but also among adults. Even though good knowledge and access to Islamic finance will help millennials to be able to identify financial products and services as their financial planning. The aim of this study is to describe the influence of Islamic financial literacy and financial inclusion on financial planning by using financial behaviour as a intervening variable. This study is descriptive quantitative research. 96 respondents are involved in the study directly through a survey method. This study used 2 (two) stages of analysis. The first stage is to find the level of respondent Islamic financial literacy. The last stage is path analysis to determine the influence of each variable. Analysis results have shown that Islamic financial literacy has no direct impact on financial planning. However, Islamic financial literacy and financial inclusion have a significant impact on financial behaviour. Furthermore, the financial behaviour has mediated the relationship between Islamic financial literacy and financial inclusion with financial planning. It shows this affects toward financial planning is 26,4%.

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What Policy for Islamic Financial Literacy?

TURKISH JOURNAL OF ISLAMIC ECONOMICS ◽

10.26414/a148 ◽

2021 ◽

Author(s):

Ahmed Tahiri Jouti

Keyword(s):

Literature Review ◽

Financial Institutions ◽

Financial Literacy ◽

Sustainable Growth ◽

Islamic Finance ◽

Finance Industry ◽

Literacy Policy ◽

Islamic Financial Institutions ◽

Financial Behaviour

This paper addresses the concept of financial literacy in Islamic finance and suggests a methodology to elaborate an effective Islamic financial literacy policy (IFLP). Based on a literature review, the paper summarizes the conclusions of studies and surveys conducted in the field of conventional financial literacy while identifying the specificities of the Islamic finance industry. Indeed, the paper would help financial authorities and Islamic financial institutions in elaborating Islamic financial literacy policies (IFLPs) in order to contribute to the sustainable growth of the industry. It promotes the idea that qualitative aspects are worth studying when elaborating an Islamic financial literacy policy that has to take into account many factors such as the maturity of the industry, the objectives of the policy (inclusion or migration), the degree of Shari’ah awareness, the understanding of Arabic terminologies, etc. Finally, the IFLP measurement should include quantitative (Total reach and number of people reached) as well as qualitative aspects (level of financial literacy, impact on financial behaviour).

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The antecedents and consequences of financial literacy: a meta-analysis

International Journal of Bank Marketing ◽

10.1108/ijbm-10-2018-0281 ◽

2019 ◽

Vol 37 (6) ◽

pp. 1462-1479 ◽

Cited By ~ 5

Author(s):

Fernando De Oliveira Santini ◽

Wagner Junior Ladeira ◽

Frederike Monika Budiner Mette ◽

Mateus Canniatti Ponchio

Keyword(s):

Financial Literacy ◽

Meta Analysis ◽

Future Research ◽

Cultural Economic ◽

Content Type ◽

Credit Score ◽

Analytical Review ◽

Financial Behaviour ◽

Antecedents And Consequences ◽

The Impact

Purpose The purpose of this paper is to determine the antecedents and consequences of financial literacy by using meta-analytic techniques. Design/methodology/approach The authors conducted a meta-analysis of 44 valid studies, which generated a total of 690 observations (effect sizes). Findings The findings showed that the factors influencing financial literacy were as follows: educational level, financial attitude, financial knowledge, financial behaviour, gender, household income and investments. The consequences of financial literacy were the behaviour of incurring avoidable credit and checking fees, credit score, and the willingness to take investment risks. The authors also find some methodological, cultural, economic and theoretical moderations effects between financial literacy and antecedent/consequent constructs. Research limitations/implications This meta-analysis reviewed the relationships found worldwide in the literature on financial literacy. The authors also identified new avenues for future research. Some specific limitations, such as the non-use of qualitative studies, are registered. Originality/value This research tested the impact of the antecedents, consequences and moderators of financial literacy via a meta-analytical review. This meta-analysis contributes to the marketing and financial literature by offering a set of empirical generalisations about the direct and moderation effects investigated.

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Women are invisible?! A literature survey on gender gap and financial training

Citizenship Social and Economics Education ◽

10.1177/2047173420922501 ◽

2020 ◽

Vol 19 (2) ◽

pp. 87-99

Author(s):

Maryam Sholevar ◽

Laurence Harris

Keyword(s):

Gender Gap ◽

Financial Literacy ◽

Financial Training ◽

Developed Countries ◽

Gender Disparity ◽

Research Gaps ◽

Household Level ◽

Novel Method ◽

Financial Behaviour ◽

And Gender

Most of the existing definitions and measurements of financial literacy have been tailored for developed countries. Although financial literacy and financial behaviour are usually assessed at the household level, the gender dimension of household agents is less explored which may overshadow the women’s low level of financial literacy. This paper is a selective systematic review aiming to survey the existing literature on financial training where the focus is on two main issues, namely, financial training and gender disparity in financial literacy. Based on a thorough literature review, we identify research gaps in each of these dimensions. The identified gaps are then used to formulate two promising research ideas. Specifically, the promising research ideas seek to investigate the gender disparity and propose a novel method for financial training.

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