FACTORS DETERMINING SHARIA FINANCIAL LITERACY AMONG GENERATION Z: THE ROLE OF SOCIAL MEDIA AND TECHNOLOGY

Abstract

Abstract
This study aims to analyze the factors that determine Islamic financial literacy
among Generation Z, emphasizing the role of social media and technology. The
background of the study is based on the phenomenon of increasing use of digital
platforms by Generation Z, which simultaneously presents both opportunities and
challenges in improving their understanding of Islamic finance. The research
method used is a mixed methods approach , combining a quantitative approach
through multiple linear regression analysis and Structural Equation Modeling-
Partial Least Square (SEM-PLS), with a qualitative approach through in-depth
interviews. The study respondents were 250 Generation Z individuals from various
regions in Indonesia, selected using purposive sampling. The results of the
quantitative analysis indicate that social media and technology have a significant
positive influence on the level of Islamic financial literacy, with the largest
contribution coming from the use of Islamic digital financial technologies such as
Islamic e-wallets, mobile banking, and Islamic investment applications. Family
factors also play a role in shaping the foundation of Islamic financial understanding,
although the influence is relatively smaller. Meanwhile, formal education has not
shown a significant influence on increasing Islamic financial literacy among
Generation Z. Qualitative findings support this result, where most informants stated
that they gained more Islamic financial knowledge from social media content and
direct experience using Islamic financial applications than from lectures. The
conclusion of this study is that Islamic financial literacy among Generation Z is
more determined by digital factors such as social media and technology than by
traditional factors such as formal education. This emphasizes the need for new
strategies to strengthen Islamic financial literacy that emphasize the use of digital
technology, collaboration with Islamic content creators , and the integration of
digital practice-based curriculum into formal education. This research is expected
to contribute to regulators, educational institutions, and Islamic financial industry
players in formulating policies and literacy programs relevant to the characteristics
of Generation Z in the digital era.