Untapping the Determinants of Islamic Financial Behaviour among Young Generations

Muhammad Arif Fadilah Ishak; Mohd Faizuddin Muhammad Zuki; Muhammad Hafiz Hassan

doi:10.15408/etk.v24i2.43908

Authors

Muhammad Arif Fadilah Ishak Department of Islamic Finance, Faculty of Muamalat & Islamic Finance, Universiti Islam Antarabangsa Tuanku Syed Sirajuddin, Malaysia
Mohd Faizuddin Muhammad Zuki IIUM Institute of Islamic Banking & Finance, International Islamic University Malaysia, Malaysia https://orcid.org/0000-0003-4366-2015
Muhammad Hafiz Hassan Department of Muamalat Administration, Faculty of Muamalat & Islamic Finance, Universiti Islam Antarabangsa Tuanku Syed Sirajuddin, Malaysia

DOI:

https://doi.org/10.15408/etk.v24i2.43908

Keywords:

Islamic financial behaviour, Islamic financial literacy, parental financial socialization, financial self-efficacy, young generations

Abstract

Research originality: The originality of this research lies in its integrated examination of psychological, social, and educational determinants of Islamic financial behaviour within a localized Malaysian context.

Research objectives: Grounded in the Theory of Planned Behaviour, the research investigates how Islamic financial literacy, financial risk attitude, parental financial socialization, and financial self-efficacy influence financial behaviour.

Research methods: A structured questionnaire was distributed to 358 respondents aged 18 to 30, and the data were analyzed using covariance-based Structural Equation Modelling (CB-SEM).

Empirical result: The study reveals two significant findings: parental financial socialization and financial self-efficacy strongly predict Islamic financial behaviour, while financial literacy and risk attitude show insignificant relationships.

Implications: Policymakers should embed Islamic financial literacy in national youth programs, educators must integrate hands-on financial training into curricula, and Islamic finance providers are encouraged to offer youth-friendly, Shariah-compliant products supported by educational outreach and family-involved financial awareness initiatives.

JEL Classification: D10, D14, D91, G41

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