A study on the influence of Islamic financial literacy in managing cash and debt among millennial in Indonesia

Ginting, Ledy Mahara and Redzuan, Nur Harena (2020) A study on the influence of Islamic financial literacy in managing cash and debt among millennial in Indonesia. In: Islamic Social Finance Outreach Programme (ISFO 2020), 10th-11th March 2020, Kuala Lumpur, Malaysia. (Unpublished)

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Abstract

Indonesia is currently experiencing a demographic dividend, where the total population of productive age is higher than the total of un-productive age. The most numerous groups in this productive age group are the millennials aged 20 to 40 years. This generation is known to have significant differences compared to previous generations, which are the ability to use advanced technology and have more consumptive behavior. So, it is required for them to have a sufficient knowledge of financial literacy in order to manage their financial wisely, especially in Islamic finance education. Aceh is one of the regions in Indonesia that will implement special regulations for financial institutions, to convert its conventional finance into fully Islamic finance products and operations. Therefore, this study aims to measure the level of Islamic financial literacy of millennials in Aceh, Indonesia and to investigate its effects on managing cash and debt. The influence of demographic factors is also examined in this study as independent variables; namely gender, age, educational background and income level. By using multiple linear regression analysis, the result shows that the level of Islamic financial literacy, educational background, and income level significantly affect cash and debt management. In addition, the results of the study shown that millennials in Aceh have a good level of Islamic financial literacy by reaching 71%. The results of this study can be references for the Islamic financial industry in Aceh and for its government. The millennial seems to be ready for the new provisions that will be implemented in relation to the Islamic financial industry in Aceh.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	8441/87246
Uncontrolled Keywords:	Islamic financial literacy, cash and debt management, financial planning, millennial generation
Subjects:	BPH Islamic Economics > BPH186.4 Bay' Al-Dayn - Debt Financing H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Nur Harena Redzuan
Date Deposited:	30 Dec 2020 22:26
Last Modified:	30 Dec 2020 22:26
URI:	http://irep.iium.edu.my/id/eprint/87246

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