Islamic Financial Literacy among Indonesian Students: An Analysis of Knowledge, Attitudes, and Behavior

Purpose: This study aims to examine Islamic Financial Literacy of Students with a multidimensional approach covering the dimensions of knowledge, attitude, and behavior. This study also evaluates students' understanding of Islamic financial concepts through objective knowledge, assesses the level of Islamic financial literacy, and examines differences based on demographic and socioeconomic characteristics. Design/methodology/approach: This study employs a survey of 980 university students in Indonesia using objective questions and Likert-scale assessments to measure their perceptions. Descriptive analysis is conducted to evaluate Islamic financial literacy levels, while ANOVA tests are used to examine differences among groups based on specific factors. Findings: The results of the study showed a significant gap between financial knowledge and behavior, where students showed a good understanding of Islamic financial concepts but had difficulty applying them in everyday financial decisions. There was no significant difference in Islamic financial literacy based on gender, but there were differences in knowledge and attitudes based on semester, parental education, and parental income. Research limitations/implications: This study highlights the importance of experiential learning approaches and practical applications in improving Islamic financial literacy. By understanding how demographic and socio-economic factors relate to Islamic financial literacy, this research provides recommendations for educational institutions, regulators, and Islamic financial institutions to enhance the effectiveness of financial literacy programs. Originality/value: Unlike previous studies that only focused on the knowledge aspect, this study integrates attitudes and behaviors, offering a more comprehensive perspective. In addition, this study provides new insights into socio- demographic disparities in Islamic financial literacy and highlights the need for an experiential learning approach to bridge the gap between understanding and practice.