Achieving Islamic Financial Literacy in Malaysia: Issues and Challenges

Abstract

It is unsurprising that the current pressures of the global economy encourage more people to save their money and protect their prosperities. Given the current unpredictable economic circumstances, the new generation must first become financially literate if they are to properly manage their personal resources throughout life. Indeed, financial literacy has a significant influence on the financial decisions that can affect an individual's financial well-being. This study therefore tries to explore factors that influence Islamic financial literacy among members of local communities. Qualitative research methods using interviews were applied in this study with the communities involved. Results of this study suggest that the factors of knowledge, religion and financial attitude play a great influencing role in propagating the Islamic financial literacy among the local communities participated. Besides, the study also noted that there were some levels of awareness concerning the topic of Islamic financial literacy among the communities when they truly understood its meaning and application in their daily lives. Hence, this study concludes that financial literacy is a basic tool that every consumer need in order to manage their finances avoid financial problems.