THE INFLUENCE OF ISLAMIC ECONOMIC EDUCATION ON SHARIA FINANCIAL LITERACY AMONG MILLENNIALS
Indonesia 
Brunei Darussalam Brunei Darussalam 
Abstract
Millennials increasingly use digital financial services, yet technological familiarity does not always ensure adequate understanding of Sharia principles, contractual structures, or financial risks. This study aimed to examine the influence of Islamic economic education on Sharia financial literacy and to identify the mediating roles of financial self-efficacy and Sharia financial attitudes. An explanatory sequential mixed-methods design was employed, combining survey data from 472 Muslim millennials, structural equation modeling, objective literacy testing, and interviews with 36 participants representing different literacy levels. The results showed that Islamic economic education significantly influenced Sharia financial literacy directly and indirectly through financial self-efficacy and Sharia financial attitudes. Practical application, case-based learning, contract analysis, and product comparison produced stronger outcomes than theoretical exposure alone. Formal academic education generated the highest conceptual scores, while professional training demonstrated stronger effects on product evaluation and financial behavior. Sharia financial literacy also significantly predicted Sharia-compliant financial behavior, although access to suitable products and digital information quality affected the consistency of application. The study concludes that effective Islamic economic education should integrate religious principles, financial calculation, contractual analysis, digital competence, and realistic decision-making practice to strengthen informed, ethical, and responsible financial behavior among millennials in increasingly complex financial markets and environments.
Full text article
References
Afdawaiza, A., Supriani, I., & Yusfiarto, R. (2025). Catalyzing Muslim women-owned Halal SMEs: Aligning models of Islamic financial institutions and governmental involvement. Social Sciences & Humanities Open, 12, 102042. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.102042
Al-Smadi, M. O. (2023). Examining the relationship between digital finance and financial inclusion: Evidence from MENA countries. Borsa Istanbul Review, 23(2), 464–472. https://doi.org/https://doi.org/10.1016/j.bir.2022.11.016
Alhammadi, S. (2023). Expanding financial inclusion in Indonesia through Takaful: opportunities, challenges and sustainability. Journal of Financial Reporting and Accounting, 23(6), 2738–2757. https://doi.org/https://doi.org/10.1108/JFRA-05-2023-0256
Alsmadi, A. A. (2024). RETRACTED: Exploring the moderating role of religious orientation on Islamic Fintech adoption. International Journal of Islamic and Middle Eastern Finance and Management, 17(2), 310–327. https://doi.org/https://doi.org/10.1108/IMEFM-09-2023-0315
Andespa, R., Md Razak, M. I., Huda, Y., & Hulwati, H. (2024). Customer perspectives on reputable and accountable Islamic finance: a behavioural intention model with a meta-analysis SEM approach. Journal of Financial Reporting and Accounting, 24(2), 719–743. https://doi.org/https://doi.org/10.1108/JFRA-05-2024-0300
Asnaashary, M., Farzanegan, M. R., Feizi, M., & Gholipour, H. F. (2024). Economic determinants of child marriage: Evidence from the Iranian provinces. Children and Youth Services Review, 159, 107518. https://doi.org/https://doi.org/10.1016/j.childyouth.2024.107518
Banuri, S., Murgia, L. M., & Haq, I. U. (2024). The power of religion: Islamic investing in the lab. International Review of Financial Analysis, 96, 103690. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103690
Ben Eli, Y., Kalagy, T., & Rosenboim, M. (2025). The economic value of “Kosher” impact banking. Journal of Behavioral and Experimental Finance, 48, 101101. https://doi.org/https://doi.org/10.1016/j.jbef.2025.101101
Chen, N., & Yu, M.-T. (2024). Human rights and value of cash: Evidence from Islamic and non-Islamic countries. Pacific-Basin Finance Journal, 86, 102466. https://doi.org/https://doi.org/10.1016/j.pacfin.2024.102466
Eshun, S. F., & Ko?enda, E. (2025). Determinants of financial inclusion in sub-Saharan Africa and OECD countries. Borsa Istanbul Review, 25(1), 34–56. https://doi.org/https://doi.org/10.1016/j.bir.2024.11.004
Faiz, I. A., & Taib, F. (2024). Developing a public accountability assessment model for Islamic non-government organisations (INGOs) in Indonesia: an information perspective. Journal of Financial Reporting and Accounting, 24(2), 744–763. https://doi.org/https://doi.org/10.1108/JFRA-07-2024-0486
Hapsari, M. I., Mahmud, A. H., Herianingrum, S., Fauzy, R. M. Q., Ab. Hamid, S. N., Prabaswara, A., & Masfiyah, L. M. (2024). Antecedents of Islamic welfare: productivity, education, and the financial aspect. International Journal of Islamic and Middle Eastern Finance and Management, 17(1), 63–85. https://doi.org/https://doi.org/10.1108/IMEFM-07-2022-0299
Haruna, A., Sahel, W., Wirajing, M. A. K., & Herman, P. R. (2025). Steadfast in crisis: Can Islamic finance enhance Cameroonian SMEs’ resilience strategies against the COVID-19 pandemic and the Russia/Ukraine war? Borsa Istanbul Review, 25(3), 633–647. https://doi.org/https://doi.org/10.1016/j.bir.2025.03.002
Hatem Falih, O., Abedin, B., Yahyazadehfar, M., Safari, M., & Kassim, E. S. (2025). Exploring customer loyalty in Islamic banking: a model for the Iraqi market. Journal of Islamic Marketing, 16(9), 2543–2568. https://doi.org/https://doi.org/10.1108/JIMA-04-2024-0148
Hidayati, D., Widiati, U., Zen, E. L., & Ivone, F. M. (2025). Developing an LMS-based of ESP course for Islamic undergraduate students. Social Sciences & Humanities Open, 11, 101635. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.101635
Hussain, S., & Yoon, C. (2025). The impact of terrorism on education: Evidence from the death of Osama bin Laden in Pakistan. Labour Economics, 102780. https://doi.org/https://doi.org/10.1016/j.labeco.2025.102780
Idrees, M. A., & Ullah, S. (2024). Comparative analysis of FinTech adoption among Islamic and conventional banking users with moderating effect of education level: A UTAUT2 perspective. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100343. https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100343
Ismail, I. J., Marua, N. M., & Changalima, I. A. (2025). Enhancing halal entrepreneurial intention: The impact of halal entrepreneurship education and halal entrepreneurial awareness. Social Sciences & Humanities Open, 11, 101548. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.101548
Khan, Z., Naz, F., Ahmad, M. I., & Battisti, E. (2024). Income-driven fintech adoption and its impact on innovation: evidence from China. Business Process Management Journal, 31(5), 1862–1883. https://doi.org/https://doi.org/10.1108/BPMJ-08-2024-0678
Kholidah, H., Fianto, B. A., Herianingrum, S., Ismail, S., & Mohd Hidzir, P. A. (2024). Do Islamic fintech lending promote microenterprises performance in Indonesia? Evidence of difference-in-difference model. International Journal of Islamic and Middle Eastern Finance and Management, 18(1), 224–246. https://doi.org/https://doi.org/10.1108/IMEFM-08-2023-0310
Laila, N., Sukmana, R., Hadiningdyah, D. I., & Rahmawati, I. (2024). Critical assessment on cash waqf-linked sukuk in Indonesia. Qualitative Research in Financial Markets, 17(4), 849–879. https://doi.org/https://doi.org/10.1108/QRFM-11-2023-0291
Makmur, K. L. (2024). Why only scrutinise formal finance? Money laundering and informal remittance regulations in Indonesia. Journal of Economic Criminology, 6, 100111. https://doi.org/https://doi.org/10.1016/j.jeconc.2024.100111
Maksum, M., Muflih, M., Rohman, M. M., Injaz, F., & Sanrego, Y. D. (2025). Why do women micro-entrepreneurs adopt Islamic digital financing? Perspectives from UTAUT, trust and Sharia compliance. Journal of Islamic Marketing, 16(12), 3509–3539. https://doi.org/https://doi.org/10.1108/JIMA-03-2023-0087
Maldonado-Castro, J., Gallego-Losada, R., & Montero-Navarro, A. (2024). Mapping the intellectual structure of microfinance and women’s empowerment: A bibliometric analysis. Heliyon, 10(20), e39563. https://doi.org/https://doi.org/10.1016/j.heliyon.2024.e39563
Maulina, R., Dhewanto, W., & Faturohman, T. (2025). Upper-middle-class Muslim characteristics on cash waqf (Islamic endowment) participation for productive purposes: does one-fits-all strategy still works? Journal of Islamic Accounting and Business Research, 16(4), 722–747. https://doi.org/10.1108/JIABR-04-2023-0134
Mboutchouang Kountchou, A., Haruna, A., & Tadzong Mouafo, P. (2025). Patronizing Islamic finance services by Cameroonian small and medium-sized entrepreneurs: examining the level and the role of Islamic finance awareness. International Journal of Islamic and Middle Eastern Finance and Management, 18(4), 747–764. https://doi.org/https://doi.org/10.1108/IMEFM-02-2024-0076
Mujiatun, S., Trianto, B., Cahyono, E. F., & Rahmayati, R. (2025). The effects of Islamic financial literacy on entrepreneurial venture performance and halal tourism ecosystem development. Journal of Small Business and Enterprise Development, 32(6), 1250–1284. https://doi.org/https://doi.org/10.1108/JSBED-03-2023-0108
Nazeer, A., Imran, N., Naveed, S., AlMuraikhi, M., Haider, I. I., & Javed, A. (2025). Developing suicide screening and prevention guideline for the children and adolescents of Pakistan: The first step. Asian Journal of Psychiatry, 110, 104586. https://doi.org/https://doi.org/10.1016/j.ajp.2025.104586
Nazir, M. A., Roomi, M. A., & Khan, M. R. (2025). Entrepreneurial firms in the crypto era: adoption trajectories and innovation dynamics. Journal of Small Business and Enterprise Development, 32(8), 18–53. https://doi.org/https://doi.org/10.1108/JSBED-11-2024-0580
Nizam, K. (2024). RETRACTED: Perception of Shariah Scholars toward Islamic Banking in Pakistan. Journal of Islamic Marketing, 16(4), 1118–1144. https://doi.org/https://doi.org/10.1108/JIMA-03-2024-0138
Okumu?, H. ?. (2024). Performance assessment of participation banks based on Maqasid al-Shari’ah framework: Evidence from Türkiye. Borsa Istanbul Review, 24(4), 806–817. https://doi.org/https://doi.org/10.1016/j.bir.2024.04.011
Prasojo, P., Muhfiatun, M., Syarifah, L., & Rosman, R. (2025). Conformity of Indonesian Islamic bank CSR practices with maqashid shariah rules. Journal of Islamic Marketing, 16(9), 2596–2616. https://doi.org/https://doi.org/10.1108/JIMA-01-2024-0047
Rahmawati, R., Junaidi, J., Sabri, S., Mustika, I., & Sumardin, S. (2025). Religiosity role on Islamic bank consumers’ self-esteem, mortal salience and social responsibility (CnSR): a terror management theory (TMT) perspective. International Journal of Social Economics, 52(11), 1570–1583. https://doi.org/https://doi.org/10.1108/IJSE-02-2024-0105
Ryandono, M. N. H., Widiastuti, T., Filianti, D., Robani, A., Al Mustofa, M. U., Susilowati, F. D., Wijayanti, I., Dewi, E. P., & Atiya, N. (2025). Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach. Social Sciences & Humanities Open, 11, 101588. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.101588
Sagiyeva, R., Kuanova, L., Ryskulov, A., Stambakiyev, N., & Doszhan, R. (2025). “Institutional traps” in the Islamic finance development: the experience of Kazakhstan. Journal of Islamic Marketing, 17(6), 2071–2097. https://doi.org/https://doi.org/10.1108/JIMA-07-2024-0302
Sanusi, S., Saedon, R., Muhammad, A. D., Zaki, H. O., & Ghazali, A. W. (2025). Cash waqf engagement among Malaysian millennials: the digitization of generosity. International Journal of Islamic and Middle Eastern Finance and Management, 18(4), 857–875. https://doi.org/https://doi.org/10.1108/IMEFM-03-2024-0148
Shahid, A. U., Patel, C., & Pan, P. (2025). Islamic worldview, social consciousness, and socially responsible investment. Advances in Accounting, 68, 100815. https://doi.org/https://doi.org/10.1016/j.adiac.2025.100815
Shikur, A. A., & Akkas, E. (2024). Islamic microfinance services: a catalyst for poverty reduction in eastern Ethiopia. International Journal of Islamic and Middle Eastern Finance and Management, 17(4), 770–788. https://doi.org/https://doi.org/10.1108/IMEFM-09-2023-0327
Siyal, S., Ahmad, R., & Ali, S. (2024). Debt trap dynamics: The moderating role of convenience, financial literacy, and religiosity in credit card usage. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100392. https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100392
Tanchangya, T., Tafsirun, U., Islam, M. S., Islam, N., Chakma, J., & Esquivias, M. A. (2025). Role of financial technology in small-scale natural Resource management through sustainable financing in Venezuela. Social Sciences & Humanities Open, 11, 101636. https://doi.org/https://doi.org/10.1016/j.ssaho.2025.101636
Tanjung, M., & Cahyanti, M. (2025). Demand for life insurance and the influence of consumer’s financial literacy, risk aversion and trust. International Journal of Pharmaceutical and Healthcare Marketing, 19(4), 1142–1163. https://doi.org/https://doi.org/10.1108/IJPHM-01-2024-0002
Taufik, M., & Budiarsyah, G. G. (2024). Board characteristics and profitability in sharia-compliant and non-sharia-compliant firms: beyond mere ceremony? Asian Review of Accounting, 33(2), 341–366. https://doi.org/https://doi.org/10.1108/ARA-03-2023-0082
Taylor, D., Osei-Tutu, F., & Awuye, I. S. (2024). The role of accounting standards in financial inclusion. International Review of Financial Analysis, 96, 103594. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103594
Timur, Y. P., Masrizal, & Trianto, B. (2025). Factors influencing adoption of e-payments by microenterprises’ owners in Indonesia. Journal of Modelling in Management, 20(6), 2054–2085. https://doi.org/https://doi.org/10.1108/JM2-09-2024-0305
Widiastuti, T., Al-shami, S. A., Mawardi, I., Zulaikha, S., Haron, R., Kasri, R. A., Mustofa, M. U. Al, & Dewi, E. P. (2024). Capturing the barriers and strategic solutions for women empowerment: Delphy analytical network process. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100345. https://doi.org/https://doi.org/10.1016/j.joitmc.2024.100345
Yasin, M., Porcu, L., Zarco, C., & Liébana-Cabanillas, F. (2025). Trust, love and engagement: exploring the dynamics of social media behavior in Islamic banking. Journal of Islamic Marketing, 16(10), 2925–2947. https://doi.org/https://doi.org/10.1108/JIMA-04-2024-0173
Yudha, A. T. R. C., Atiya, N., Faidah, A. R., Febriyanti, N., & Masrufah, N. (2025). Maslahah value optimization in exploring Muslim consumption behavior: a study of impulse buying on ewallet users in East Java, Indonesia. Journal of Islamic Marketing, 16(9), 2514–2542. https://doi.org/https://doi.org/10.1108/JIMA-03-2024-0118
Authors
Copyright (c) 2026 Kurniati Karim, Nadiah Ismail, Khalid Mahmud
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
