Financial literacy among Malaysian Muslim undergraduates
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 29 January 2020
Issue publication date: 12 August 2020
Abstract
Purpose
University students are known to face many challenges in achieving high financial literacy. The purpose of this paper is to examine the level of financial literacy among Malaysian Muslim undergraduates as explained through sociocultural variables. Furthermore, this paper explores a few additional Islamic measurements as part of assessing the level of financial literacy among the students.
Design/methodology/approach
The questionnaires were drafted based on a multi-dimensional financial literacy model and distributed conveniently to 330 respondents. Post-interviews were also conducted with selected students to further comprehend the sociocultural context.
Findings
The findings suggest that exposing students to financial education and practices influence their financial literacy scores. Students who attended muamalat-related courses demonstrated better financial literacy scores. Meanwhile, post-interview results indicate that the students’ social environment and interactions also play important roles in enhancing their financial literacy. Hence, it is believed that it is essential to embed Islamic-based measurements to equip students with financial literacy in tandem with their pedagogic development. The results thus extend previous studies by confirming the importance of Islamic-based finance- and business-related knowledge for all tertiary students. Furthermore, the curricula should be made compatible to their studying environment and attuned to their values and cultures.
Practical implications
The findings suggest the introduction of personal financial and muamalat-based knowledge and practices relative to their Islamic programme orientation. This should take place during the students’ academic years and across all academic programmes’ orientation. The study also highlights the importance of developing special measurements of Islamic financial literacy for Muslims congruent to their distinct Islamic identity.
Social implications
The study indicates the importance of high financial literacy among tertiary students for them to have a financially stable future.
Originality/value
The research is original in its use of several measurements of financial literacy that embedded Islamic teachings concomitant to the Muslim respondents.
Keywords
Acknowledgements
The authors would like to acknowledge the financial support provided by University of Malaya under the Equitable Society Research Cluster (ESRC) research grant UMRG-RP015A-13SBS.
Citation
Md.Sapir @ Md.Shafik, A.S. and Wan Ahmad, W.M. (2020), "Financial literacy among Malaysian Muslim undergraduates", Journal of Islamic Accounting and Business Research, Vol. 11 No. 8, pp. 1515-1529. https://doi.org/10.1108/JIABR-10-2017-0149
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited