A study on financial literacy among Muslim university students: a case study at UiTM Dungun / Siti Nur Hidayah Mohd Yusdi

As a university student, it is crucial to have enough knowledge regarding financial management to allow them to react competently to life events in the future. Nowadays, the concerns of students with financial problems are worrying. With the amount of the loan or scholarship obtained, many students still struggled to handle their money adequately. Therefore, this research paper aims to examine the level of financial literacy among Muslim University students at UiTM Dungun. This study carries out three objectives; (i) to investigate the UiTM Dungun Muslim students’ level of financial literacy, (ii) to ascertain the extent of Islamic principles application among UiTM Dungun Muslim students in managing their finances and (iii) to propose an Islamic solution to increase the level of financial literacy among Muslim university students. The researcher distributed an online questionnaire to random students in UiTM Dungun and collected 204 of them. The study adopted a quantitative research approach with a self-administered questionnaire, and the Cronbach’s alpha coefficient was used to test reliability. The results indicated that Islamic Principles have the highest significant effect on financial literacy than financial behaviour and spending pattern. Lastly, the limitation and recommendation are included in this study.