The role of financial behavior, financial stress, and financial well-being toward Islamic financial literacy

• Main Authors: Doloh, Aubaidillah, Redzuan, Nur Harena, Mohd Yusoff, Zarinah
• Format: Book Chapter
• Language: English; English
• Published: Springer 2023
• Subjects: HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/106037/6/106037_The%20role%20of%20financial%20behavior.pdf; http://irep.iium.edu.my/106037/11/106037_The%20role%20of%20financial%20behavior_SCOPUS.pdf; http://irep.iium.edu.my/106037/; https://link.springer.com/chapter/10.1007/978-3-031-27860-0_15

Financial literacy is an important national issue and has become the main focus in many countries. Various reports have confirmed that a huge number of the world’s population is lacking knowledge of finance. The increasing number of people with a low level of financial literacy reflects the effectiveness of their educational institution and impacts the well-being of the national economy in the country. Thus, this study explores the role of financial behavior, financial stress, and financial well-being in Islamic financial literacy. The study employs a qualitative research method by reviewing the selected literature using content analysis. Financial behavior, financial stress, and financial well-being are good predictors to determine the level of Islamic financial literacy. The study suggests that the regulator and education institutions should provide more relevant projects and programs to improve the knowledge and understanding of Islamic financial literacy, especially among youth, to reflect on good financial behavior and financial well-being according to Islamic principles.