Islamic Financial Literacy and Money Attitudes on Personal Financial Management: Financial Behavior as a Mediator

Abstract

This study examines the effects of Islamic financial literacy and attitudes toward money on personal financial management, with financial behavior as a mediating variable among Muslim Generation Z students in Indonesia. The study responds to increasing financial challenges among young adults and the need to strengthen financial knowledge, attitudes, and responsible financial practices. A quantitative explanatory approach was employed using data from 150 Muslim Generation Z undergraduate students selected through purposive sampling. Data were collected through a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 3.0. The results show that Islamic financial literacy and attitudes toward money positively and significantly affect financial behavior and personal financial management. Financial behavior also positively and significantly affects personal financial management and partially mediates the effects of both Islamic financial literacy and attitudes toward money on personal financial management. The novelty of this study lies in integrating Islamic financial literacy and attitudes toward money within a mediation model focused on Muslim Generation Z students. These findings contribute to understanding the behavioral mechanisms underlying effective financial management and suggest that financial education should combine Islamic financial knowledge with practical behavior-based training.