The significance of financial literacy for family wealth management: a critical study from maqasid perspective (Kepentingan Ilmu kewangan dalam pengurusan harta sesebuah Keluarga: kajian kritikal mengikut perspektif Maqasid)

• Main Authors: Diniyya, Aulia Arifatu, Fatah Yasin, Raudlotul Firdaus, Mahmud, Mek Wok
• Format: Article
• Language: English
• Published: International Islamic University Malaysia (IIUM) 2020
• Subjects: BP140 Islamic law (Fiqh); BP173.75 Islam and economics; HG Finance
• Online Access: http://irep.iium.edu.my/84444/1/VIEWOF~1.PDF; http://irep.iium.edu.my/84444/; https://journals.iium.edu.my/jiasia/index.php/jia/issue/view/68; https://doi.org/10.31436/jia.v17i3.993

Financial literacy has a tremendous impact on sustaining family financial management. Lack of financial knowledge may lead to arising financial problems within the family which also may affect the personal relationship and working performance of its members. Managing wealth realizes the Maqasid Shariah, Hifz al-mal (preservation of wealth) to ensure the sustainable life of every individual and Hifz al-nafs (preservation of life. This study addresses the importance of financial literacy in the dynamic environment of household financial management to avoid family problems such as divorce, financial arguments and broken family which would be contradictory to the intent of the Shariah. The literature on financial literacy and family financial management were critically reviewed and used in an attempt to highlight the financial issues within the family. This paper explores financial literacy in family financial management as well as the conflicts that arise from financial problems. Considering the urgency of financial literacy in the dynamic environment of household financial management, it aims to create awareness and propose recommendation on promoting the financial literacy in managing household’s finance as part of the preservation of Maqasid in Malaysia context.