The impact of religiosity and financial literacy on financial management behavior and well-being among Indonesian Muslims
This study examines the effects of religiosity and Islamic financial literacy on Muslims’ financial behavior and well-being. Additionally, it investigates the impact of sociodemographic variables on the centrality of religiosity, financial literacy, financial management behavior, and the well-bei...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English |
| Published: |
Springer Nature
2024
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/116843/7/116843_%20The%20impact%20of%20religiosity.pdf http://irep.iium.edu.my/116843/8/116843_%20The%20impact%20of%20religiosity_Scopus.pdf http://irep.iium.edu.my/116843/ https://www.nature.com/articles/s41599-024-03309-6 https://doi.org/10.1057/s41599-024-03309-6 |
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| Summary: | This study examines the effects of religiosity and Islamic financial literacy on Muslims’
financial behavior and well-being. Additionally, it investigates the impact of sociodemographic
variables on the centrality of religiosity, financial literacy, financial management
behavior, and the well-being of Muslim consumers. This research integrates perspectives
from Rational Choice Theory, the Rational Choice Theory of Religion, and Behavioral Finance
to illuminate the mechanisms behind these relationships. Data were collected through a nonprobability
sampling method from 1141 Muslim individuals aged between 18 and 65 living in
Indonesia. The results indicate that the centrality of religion in the lives of Muslim consumers
and Islamic financial literacy significantly affects their financial management behavior and
financial well-being. However, the empirical evidence suggests a more substantial effect of
Islamic financial literacy than religiosity on both dependent variables. |
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