A study on the influence of Islamic financial literacy in managing cash and debt among millennial in Indonesia

• Main Authors: Ginting, Ledy Mahara, Redzuan, Nur Harena
• Format: Book Chapter
• Language: English; English
• Published: IGI Publisher 2021
• Subjects: BPH186.4 Bay' Al-Dayn - Debt Financing; HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/87227/7/87227%20chapter%20-%20in-press.pdf; http://irep.iium.edu.my/87227/8/87227_%20Study%20on%20the%20influence.pdf; http://irep.iium.edu.my/87227/; https://www.igi-global.com/book/handbook-research-islamic-social-finance/257762
• Institution: Universiti Islam Antarabangsa Malaysia

Indonesia is currently experiencing a demographic dividend, where the total population of productive age is higher than the total of un-productive age. The most numerous groups in this productive age group are the millennials aged 20 to 40 years, which required them to have sufficient knowledge of Islamic financial literacy. Therefore, this study aims to measure the level of Islamic financial literacy of millennials in Aceh, Indonesia and to investigate its effects on managing cash and debt. The influence of demographic factors is also examined in this study namely gender, age, educational background, and income level. By using multiple linear regression analysis, the result shows that the level of Islamic financial literacy, educational background, and income level significantly affects cash and debt management. The results of this study can be references for the Islamic financial industry in Aceh and for its government. The millennial seems to be ready for the new provisions that will be implemented in relation to the Islamic financial industry in Aceh.