The Role of Islamic Economic Literacy in Shaping Financial Behavior Based on Islamic Principles

Abstract

The development of the Islamic economy in Indonesia has not been fully accompanied by an adequate level of Islamic economic literacy among the general public. This condition creates a gap between religious awareness and daily financial practices, where people tend to understand Islamic concepts normatively but are unable to implement them operationally in financial management. This study aims to analyze the role of Islamic economic literacy in shaping public financial behavior based on Islamic principles. This study uses a descriptive qualitative approach with data collection techniques in the form of a survey of the general public and a documentation study of official Islamic financial literacy reports. The results show that Islamic economic literacy in the community is still at the basic level and has not yet developed into an applied understanding. Financial behavior based on Islamic principles is more dominant in aspects of consumption and social distribution, while long-term Islamic-based financial planning is still limited. Islamic economic literacy has been shown to play a significant role as a cognitive factor influencing individual attitudes, beliefs, and perceptions of control in financial decision-making. This research confirms that strengthening contextual and applicable Islamic economic literacy is key to shaping public financial behavior that aligns with the maqasid of Islamic law.