Abstract
Islamic financial literacy is a crucial aspect of strengthening the Islamic economic and financial ecosystem in Indonesia. Generation Z holds a strategic position in this development, as they have grown up amidst rapid digital transformation and are highly accustomed to various technology-based financial services. However, the ease of accessing digital financial services is not always accompanied by an adequate understanding of Sharia principles, product characteristics, risks, and Sharia compliance aspects.
This article aims to identify strategies for improving Islamic financial literacy among Generation Z through digital education, while formulating approaches that can bridge the gap between financial knowledge and behavior. The study employs an integrative literature review method, examining various scientific articles and institutional reports related to Islamic financial literacy, Generation Z, digitalization, and financial behavior.
The results indicate that effective digital education requires more than just providing information about Islamic financial products. Education must integrate an understanding of Sharia principles, financial management skills, risk awareness, the ability to evaluate products, and the formation of responsible financial habits. With this approach, digital education can serve as a strategic tool to encourage Generation Z not only to understand Islamic financial concepts but also to apply them in their daily lives.
Keywords: Islamic Financial Literacy; Generation Z; Digital Education; Financial Inclusion; Islamic Finance
Generation Z and the Challenges of Islamic Financial Literacy
The development of digital technology has transformed how the younger generation obtains information, conducts transactions, manages finances, and utilizes various financial products and services. These changes open significant opportunities for the growth of the Islamic finance industry, especially since Generation Z is a group highly connected to the internet, social media, digital applications, and various financial technology innovations.
Through digital media, information regarding Islamic financial products and services can be disseminated faster, more broadly, and more easily. Generation Z can access information about Sharia savings, financing, investments, digital zakat, and even Islamic capital market products directly through their smartphones.
However, high access to information and services does not automatically indicate a high level of literacy. Technological convenience must be balanced with the ability to understand benefits, costs, risks, product characteristics, and the alignment of a service with Sharia principles. Without adequate understanding, digital access can actually lead to immature and impulsive financial decisions.
Data from the National Financial Literacy and Inclusion Survey (SNLIK) shows that Indonesia's Islamic financial literacy index reached 39.11% in 2024, while the Islamic financial inclusion index stood at 12.88%. By 2026, the Islamic financial literacy index increased to 43.07%, while the inclusion index reached 13.24%.
Although there has been an increase, the data shows that there is still significant room to strengthen understanding and the use of Islamic financial products and services among the public.
This condition is consistent with several studies discussing the financial behavior of Generation Z. Fadillah and Lubis (2024), for instance, found a correlation between Islamic financial literacy, Islamic financial inclusion, and financial behavior regarding the investment decisions of Generation Z in West Java.
Meanwhile, Hasanah et al. (2025) demonstrated that Islamic financial literacy and socialization from the family environment play an important role in shaping the financial planning of Generation Z. Research by Muhtar Aulia et al. (2025) also shows that the development of financial technology is closely linked to the economic activities of the younger generation.
These findings indicate that improving Islamic financial literacy needs to be directed not only at the knowledge aspect but also at the formation of skills and behavior in managing finances.
Digital Education as an Opportunity
Financial education in the digital era does not always have to be delivered through seminars, formal training, or lengthy learning materials. Changes in Generation Z's information consumption patterns allow for the educational process to be conducted through various formats that are simpler, more interactive, and easier to understand.
Information regarding the difference between riba and margins, the principles of contracts in Sharia transactions, income management, budgeting, emergency fund formation, and Sharia investment can be delivered through short videos, infographics, webinars, podcasts, digital simulations, or online communities.
More concise formats can serve as an entry point to attract Generation Z's attention to Islamic financial issues. However, short content must still be directed toward a deeper learning process so that it does not stop at superficial information.
On the other hand, digital education also faces several challenges. The abundance of financial content on social media is not always accompanied by accountable sources. Incomplete information, excessive profit claims, or content that is too oriented toward product promotion can potentially lead to misconceptions.
Therefore, Islamic financial education content needs to prioritize understanding and the ability to make decisions as the main goal. Education should not only introduce a product but also explain its mechanisms, benefits, costs, risks, contracts, and its compliance with Sharia principles.
One important issue that needs attention is the knowledge-behavior gap, which is the gap between the knowledge a person possesses and the behavior applied in daily life.
A person may know the importance of saving, understand the need for an emergency fund, or know the basic principles of Sharia investment. However, that knowledge is not necessarily translated into habits of managing a budget, setting aside income, controlling consumption, or choosing investment instruments consistently.
Thus, the success of education cannot be measured solely by how much information is received by participants, but also by the extent to which that information influences how they make financial decisions.
From Digital Content to Behavioral Change
Strategies for improving Islamic financial literacy through digital media can start with short content capable of capturing attention. Topics relevant to Generation Z's life, such as monthly budget management, the use of paylaterservices, investments, emergency funds, and consumptive habits, can be the starting point in the educational process.
Once attention is captured, education needs to continue with simple explanations regarding the principles, benefits, costs, and risks of every financial decision. These explanations need to be packaged in language that is easy to understand without reducing the substance of Sharia principles.
The next stage is to provide opportunities for participants to practice the knowledge they have acquired. Students, for example, can be given case studies and simulations to compare several savings or investment products based on aspects of risk, cost, profit, contracts, and Sharia compliance.
A case-based approach is important because it helps participants understand that financial decisions are not only determined by potential profits but must also consider needs, financial capacity, risk levels, and alignment with Sharia principles.
Communities and peer learning methods can also support the process of behavior formation. Discussions with peers allow Generation Z to exchange experiences regarding financial management, investment, consumption, and the use of digital financial services.
In the context of higher education, universities can play a role through the integration of Islamic financial literacy materials into academic activities, student organizations, seminars, training, and community service programs.
Furthermore, collaboration between universities, regulators, and the financial industry is also needed to maintain the accuracy and credibility of information. The Financial Services Authority (OJK), for example, can provide educational materials that are simple, easy to understand, and data-driven. Meanwhile, the financial services industry needs to convey information about products transparently without making educational activities merely a marketing tool.
Based on this approach, digital education can be directed through four main stages, namely attracting attention, building understanding, encouraging practice, and forming habits.
In the first stage, digital media functions to attract the attention of Generation Z through content relevant to daily life. The second stage focuses on increasing understanding of Islamic financial concepts and principles. The third stage directs participants to apply knowledge through simulations or financial management practices. The final stage aims to form financial habits that are healthier, more responsible, and in accordance with Sharia principles.
Thus, digital media should be positioned as an entry point toward a process of behavioral change, not just a channel for disseminating information.
Conclusion
Improving Islamic financial literacy among Generation Z cannot be done simply by increasing information about financial products and services. Ease of digital access needs to be balanced with the ability to understand Sharia principles, recognize product characteristics and risks, manage finances, and make decisions rationally and responsibly.
Digital education has great potential because it aligns with the characteristics and information consumption patterns of Generation Z. The use of short videos, case studies, simulations, digital communities, and peer learning methods can make the learning process more relevant and interactive.
However, the success of this strategy also requires support from various parties. Universities can strengthen financial literacy education and practice, regulators play a role in providing credible information, while the financial services industry has a responsibility to convey product characteristics transparently.
Ultimately, Islamic financial literacy should not stop at the stage of “knowing”, but needs to develop into “understanding, being able to apply, and being accustomed to making financial decisions that are in accordance with Sharia principles.”
References
Fadillah, A. N., & Lubis, D. (2024). The influence of Islamic financial literacy, Islamic financial inclusion, and financial behavior on the investment decisions of Generation Z in West Java. Falah: Jurnal Ekonomi Syariah, 9(1), 1–16.
Hasanah, N., et al. (2025). Generation Z’s Islamic financial planning: The role of Islamic financial literacy and parental socialization. Review of Management and Entrepreneurship, 9(2).
Muhtar Aulia, A. A., Lismawati, & Nuringsih. (2025). Sharia financial literacy of Generation Z toward economic activities. Jurnal Adz-Dzahab: Jurnal Ekonomi dan Bisnis Islam, 10(1).
Otoritas Jasa Keuangan & Badan Pusat Statistik. (2024). Survei Nasional Literasi dan Inklusi Keuangan (SNLIK) 2024.
Otoritas Jasa Keuangan, Lembaga Penjamin Simpanan, & Badan Pusat Statistik. (2026). Survei Nasional Literasi dan Inklusi Keuangan (SNLIK) 2026.
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