The dilemma of millennial Muslims towards financial management: an Islamic financial literacy perspective

Abstract

Purpose

This study aims to empirically investigate the pathway to financial management behavioural intentions (FMBI) from Islamic perspectives, through dimensions of Islamic financial literacy (IFL; Islamic financial knowledge [IFK], financial skills [FS] and self-efficacy [SE]) based on an extension to the theory of planned behaviour (TPB) model.

Design/methodology/approach

Data was collected via a self-administered questionnaire by 300 millennials (Muslims) working in Malaysia. Structural equation modelling was used for data analysis purposes by using SmartPLS.

Findings

The results present the positive and significant influence of IFK on financial attitude (FA), FS on the elements of FA, subjective norm (SN), perceived behavioural control (PBC) and perceived moral obligation (PMO), SE on FA, FS on the elements of FA, SN and PBC. Furthermore, PBC and PMO were strong predictors of FMBI from an Islamic standpoint.

Originality/value

The findings successfully contribute to the theoretical extension of the TPB model via dimensions of IFL (IFK, FS and SE) as predictors of FA, SNs, PBC and PMO. Besides, this study provides some new insights of millennial Muslims concerning IFL and financial management from Islamic beliefs.

Citation

Osman, I., Syed Alwi, S.F., Rehman, M.A., Muda, R., Hassan, F., Hassan, R. and Abdullah, H. (2024), "The dilemma of millennial Muslims towards financial management: an Islamic financial literacy perspective", Journal of Islamic Marketing, Vol. 15 No. 1, pp. 59-78. https://doi.org/10.1108/JIMA-09-2021-0283