The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia

Debt is considered as one of the major sources of funds from third party, especially for low-income households. Even though Islam allows debt, it should not be used recklessly. Taking one debt after another is apparently not suggested for the low-income households although it is common among them. I...

Full description

Bibliographic Details
Main Authors:	Arsyianti, Laily Dwi, Kassim, Salina
Format:	Article
Language:	English
Published:	IIUM Press 2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/61302/ http://irep.iium.edu.my/61302/ http://irep.iium.edu.my/61302/1/61302_The%20influence%20of%20financial%20education.pdf

id	iium-61302
recordtype	eprints
spelling	iium-613022018-01-12T01:14:16Z http://irep.iium.edu.my/61302/ The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia Arsyianti, Laily Dwi Kassim, Salina HG3368 Islamic Banking and Finance Debt is considered as one of the major sources of funds from third party, especially for low-income households. Even though Islam allows debt, it should not be used recklessly. Taking one debt after another is apparently not suggested for the low-income households although it is common among them. In order to understand the consecutive debt-taking behaviour among the low income households in Indonesia as well as the role of financial education in influencing this behaviour, this study adopts the Structural Equation Modelling (SEM) to analyse pertinent data elicited from 1,780 low-income households from six areas in Indonesia. The study finds that financial education has positive effect on using debt consecutively albeit wisely for fulfilling family needs. By wisely, it means that the low income households are able to control their desire and satisfaction, thus practicing the true spirit of consumption as proposed in Islam. IIUM Press 2017-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61302/1/61302_The%20influence%20of%20financial%20education.pdf Arsyianti, Laily Dwi and Kassim, Salina (2017) The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia. Journal of Islamic Finance, 6 (Special Issue). pp. 114-132. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/261
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Arsyianti, Laily Dwi Kassim, Salina The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
description	Debt is considered as one of the major sources of funds from third party, especially for low-income households. Even though Islam allows debt, it should not be used recklessly. Taking one debt after another is apparently not suggested for the low-income households although it is common among them. In order to understand the consecutive debt-taking behaviour among the low income households in Indonesia as well as the role of financial education in influencing this behaviour, this study adopts the Structural Equation Modelling (SEM) to analyse pertinent data elicited from 1,780 low-income households from six areas in Indonesia. The study finds that financial education has positive effect on using debt consecutively albeit wisely for fulfilling family needs. By wisely, it means that the low income households are able to control their desire and satisfaction, thus practicing the true spirit of consumption as proposed in Islam.
format	Article
author	Arsyianti, Laily Dwi Kassim, Salina
author_facet	Arsyianti, Laily Dwi Kassim, Salina
author_sort	Arsyianti, Laily Dwi
title	The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
title_short	The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
title_full	The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
title_fullStr	The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
title_full_unstemmed	The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia
title_sort	influence of financial education on consecutive debt-taking behaviour of low-income households in indonesia
publisher	IIUM Press
publishDate	2017
url	http://irep.iium.edu.my/61302/ http://irep.iium.edu.my/61302/ http://irep.iium.edu.my/61302/1/61302_The%20influence%20of%20financial%20education.pdf
first_indexed	2023-09-18T21:26:56Z
last_indexed	2023-09-18T21:26:56Z
_version_	1777412254005723136

The influence of financial education on consecutive debt-taking behaviour of low-income households in Indonesia

Similar Items