The Influence of Sharia Financial Literacy and Religious Attitudes on Investment Behavior among Muslim Millennials in Indonesia

Authors

  • Sri Wilistiningsih Politeknik Tunas Pemuda Tangerang
  • Rival Pahrijal Universitas Nusa Putra
  • Dila Padila Nurhasanah Universitas Nusa Putra

DOI:

https://doi.org/10.58812/wsiss.v3i04.2347

Keywords:

Sharia Financial Literacy, Religious Attitude, Investment Behavior, Muslim Millennials, Indonesia

Abstract

This study investigates the influence of Sharia financial literacy and religious attitudes on investment behavior among Muslim millennials in Indonesia. The research aims to understand how financial knowledge grounded in Islamic principles and religious commitment shape investment decision-making in a faith-based context. Using a quantitative research design, data were collected from 175 respondents through a structured questionnaire employing a Likert scale (1–5). The data were analyzed using SPSS version 25, including validity, reliability, and multiple regression tests. The findings reveal that both Sharia financial literacy and religious attitudes have positive and significant effects on investment behavior. The regression model shows that Sharia financial literacy contributes more strongly, indicating that higher understanding of Islamic financial concepts enhances rational and ethical investment choices. The coefficient of determination (R² = 0.537) demonstrates that both variables explain 53.7% of the variation in investment behavior. The study concludes that a combination of financial competence and religious values fosters responsible, Sharia-compliant investment behavior among young Muslim investors. These findings suggest that promoting Islamic financial education and strengthening religious awareness can enhance sustainable participation in the Islamic financial market.

References

[1] A. Muttaqin, U. Hamsah, and R. H. Abror, “Muhammadiyah, Sufism, and the quest for ‘authentic’Islamic spirituality,” Indonesian Journal of Islam and Muslim Societies, vol. 13, no. 1, pp. 199–226, 2023.

[2] E. Sumastuti, S. Harahap, and G. Sianipar, “Exploring The Impact Of Green Finance, Financial Literacy, And Social Capital On The Performance And Financial Sustainability Of Indonesian MSMEs,” Journal of Economic, Bussines and Accounting (COSTING), vol. 7, no. 4, pp. 10869–10886, 2024.

[3] N. M. Zayed, M. M. Rashid, S. Darwish, M. Faisal-E-Alam, V. Nitsenko, and K. M. A. Islam, “The Power of Compensation System (CS) on Employee Satisfaction (ES): The Mediating Role of Employee Motivation (EM),” Economies, vol. 10, no. 11, p. 290, 2022.

[4] M. A. S. Mohd Shahrom, N. Zainal, M. F. Ab Aziz, and S. A. Mostafa, “A Review of Glowworm Swarm Optimization Meta-Heuristic Swarm Intelligence and its Fusion in Various Applications.,” Fusion: Practice & Applications, vol. 13, no. 1, 2023.

[5] A. Rahman, “Islamic Microfinance: An Ethical Alternative to Poverty Alleviation,” Humanomics, 2010, doi: https://doi.org/10.1108/08288661011090884.

[6] D. R. & N. Pratiwi A., “Analisis Literasi Keuangan Syariah terhadap Perilaku Investasi di Kalangan Milenial Muslim,” Jurnal Ekonomi Syariah dan Bisnis, 2021.

[7] M. & S. Rizal N., “Determinants of Investment Decision in Islamic Capital Market: Evidence from Indonesia,” Journal of Islamic Economics and Finance, 2020.

[8] D. K. & W. Schooley D. D., “Investors’ Asset Allocations versus Life-Cycle Funds,” Financial Services Review, 2010.

[9] Z. & F. Zainudin N., “Influence of Religiosity and Risk Perception on Sharia Investment Decisions,” Journal of Islamic Economics and Business Research, 2023.

[10] H. & R. Usman F., “Islamic Financial Literacy and Its Influence on Savings and Investment Behavior among Muslim Households,” Al-Iqtishad: Journal of Islamic Economics, 2020, doi: https://doi.org/10.15408/aiq.v12i2.18388.

[11] J. K. & B. Tuffour F., “Financial Literacy and Investment Decisions: The Moderating Effect of Religiosity,” Int J Soc Econ, 2020, doi: https://doi.org/10.1108/IJSE-09-2020-0625.

[12] H. & H. Siti M., “The Role of Financial Education and Sharia Financial Literacy in Promoting Ethical Investment Decisions,” International Journal of Islamic Banking and Finance Research, 2021.

[13] T. Larasati, A. I. Fardiansyah, D. Saketi, and A. N. Dewiarti, “The Ethical and Legal Aspects of Health Policy on Electronic Medical Records in Indonesia,” Cepalo, vol. 8, no. 2, pp. 103–112, 2024.

[14] M. R. A. Aziz, “Appraising the Determinants and Outcomes of Islamic Financial Literacy through the Lens of a Systematic Literature Review,” International Journal of Islamic Economics and Finance, 2024.

[15] M. et al. Zayed, “Religiosity and Financial Decision-Making: Evidence from Emerging Economies,” Journal of Behavioral Finance, 2022.

[16] N. Nurul, “Dampak literasi keuangan syariah dan kepercayaan terhadap keputusan menabung di Bank Muamalat KCP Stabat,” Jurnal Ekonomi dan Keuangan Syariah, 2025.

[17] J. Gibbs, “A Criticism of Two Recent Attempts to Scale Glock and Stark’s Dimensions of Religiosity,” Sociol Relig, 1970.

[18] J.-G. Vaillancourt, “From Five to Ten Dimensions of Religion: Charles Y. Glock’s Dimensions of Religiosity Revisited,” Sociol Relig, 2008.

[19] R. Cipriani, “Religion,” Springer Handbook of Sociology of Religion, 2023.

[20] S. Alam Mohd Z. & Hisham B., “Religiosity and Attitude toward Islamic Finance,” Journal of Islamic Marketing, 2011.

[21] N. Abdullah and N. F. Rosli, “An evaluation on determinants of SMEs performance in Malaysia,” South East Asia Journal of Contemporary Business, Economics and Law, vol. 7, no. 2, pp. 16–23, 2015.

[22] S. Roccas, “Religion and Value Systems,” Personality and Social Psychology Review, 2005.

[23] J. E. & D. J. Faulkner G. F., “Religiosity in 5-D: An Empirical Analysis,” Social Forces, 1966.

[24] I. & B. Tahir M., “Islamic Investment Behaviour,” International Journal of Islamic and Middle Eastern Finance and Management, 2011.

[25] F. et al. Hidayanti, “The Impact of Religiosity, Risk Tolerance, Financial Behavior, and Locus of Control on Sharia Investment Decisions: The Moderating Role of Financial Literacy,” Asian Journal of Islamic Management, 2025.

[26] A. S. & R. Fauzi M., “The Impact of Sharia Financial Literacy, Religiosity, and Perceived Quality on Investment Decisions,” Journal of Islamic Finance Studies, 2024.

[27] P. et al. Gahlot, “Influence of Behavioral Biases on Investor Decision‐Making in Delhi‐NCR,” Indian Journal of Finance, 2024.

[28] A. & H. Muliadin A. M., “Pengaruh literasi keuangan syariah, herding behavior, dan religiusitas terhadap minat investasi di pasar modal syariah,” Jurnal Pasar Modal Syariah, 2024.

[29] A. D. Wibiantoro, “Minat dan Pengetahuan Generasi Z serta Milenial dalam Berinvestasi di Pasar Modal Syariah: Analisis Bibliometrik,” Jurnal Pasar Modal Syariah, 2023.

[30] S. R. Ajija, “Intention of Muslim Millennials to Invest in Islamic Peer-to-Peer Lending in Indonesia,” International Journal of Islamic Finance, 2024.

[31] S. F. & F. Ahmad A. S., “The Impact of Sharia Financial Literacy, Religiosity, and Perceived Quality on Investment Decisions on Sharia-Compliant Products,” Journal of Islamic Economics and Finance, 2024.

Downloads

Published

2025-10-31

Issue

Vol. 3 No. 04 (2025): West Science Islamic Studies

Section

Articles

License

Copyright (c) 2025 Sri Wilistiningsih, Rival Pahrijal, Dila Padila Nurhasanah

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

The Influence of Sharia Financial Literacy and Religious Attitudes on Investment Behavior among Muslim Millennials in Indonesia (S. Wilistiningsih, R. . Pahrijal, & D. P. . Nurhasanah , Trans.). (2025). West Science Islamic Studies, 3(04), 375~384. https://doi.org/10.58812/wsiss.v3i04.2347