Keywords: Debt Management Behavior, Financial Well-Being, Islamic Financial Literacy.


Islam teaches Muslims to be clever in seeking of “rizki” (income) and spending it wisely to achieve well-being, happiness in the Islamic way. This study aims to prove whether Islamic Financial Knowledge, religiosity, self-control, and lifestyle are determinants of debt management behavior in Muslim communities. Furthermore, this study also examines whether debt management behavior affects financial well-being. This study is a quantitative study using a carefully developed questionnaire and tested for validity and reliability. The selected samples are residents of Surabaya who earning money from work.  By surveying 331 respondents and using SEM analysis tools, behavior towards debt was confirmed as a determinant of welfare even the correlation number is small but significant. This study also proved that financial knowledge does not affect self-control but lifestyle and religiosity do. Furthermore, financial knowledge together with self-control and religiosity are predictor of behavior. Interestingly, the result shows that the higher the religiosity, the lower the debt behavior. This fact may be since there are some cultural rituals on a religious event that need extra spending. This result implies that Moslem should be careful with their lifestyle especially regarding Islamic events and consumerism as identity since it can reduce self-control and in turn potentially lower financial management. Using debt to fulfill the lifestyle is dangerous for well being.

JEL Classification Codes: D1, I22, R11.

Author Biographies

Wiwik Lestari

Associate Professor, Sharia Economic Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia

Meliza Silvy

Management Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia


Achour, M., Grine, F., Mohd Nor, M. R., & MohdYusoff, M. Y. Z. (2015). Measuring Religiosity and Its Effects on Personal Well being: A Case Study of Muslim Female Academicians in Malaysia. Journal of Religion and Health, 54(3), 984–997.

Ahmad, M. (2010). Why Islamic financial literacy is important. Personal Money, March, 1–3.

Atkinson, A., & Messy, F.-A. (2011). Assessing financial literacy in 12 countries: an OECD/INFE international pilot exercise. Journal of Pension Economics and Finance, 10(04), 657–665.

Bir, S. (2014). Knowledge, Attitude and their Effect on the Recently Graduated Employees ’ Financial Management Practices and Satisfaction. Economic Literature, XII(December), 69–81.

Chen, H., & Volpe, R. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128.

Fauzia, I. Y., & Riyadi, A. K. (2020). New trends in economic behavior: The phenomenon of the anti-usury movement in indonesia. Studia Islamika, 27(3), 515–550.

Gardarsdóttir, R. B., & Dittmar, H. (2012). The relationship of materialism to debt and financial well being: The case of Iceland’s perceived prosperity. Journal of Economic Psychology, 33(3), 471–481.

Gathergood, J. (2012). Self-control, financial literacy and consumer over-indebtedness. Journal of Economic Psychology, 33(3), 590–602.

Gathergood, J., & Weber, J. (2014). Self-control, financial literacy & the co-holding puzzle. Journal of Economic Behavior and Organization, 107(PB), 455–469.

Herdjiono, I., Damanik, L. A., & Musamus, U. (2016). Pengaruh Financial Attitude, Financial Knowledge, Parental Income terhadap Financial Management Behavior. 3, 226–241.

Hess, D. W. (2012). The Impact of Religiosity on Personal Financial Decisions. Journal of Religion & Society, 14, 1–13.

Hogarth, J. M., & Hilgert, M. (2002). Financial knowledge, experience and learning preferences: Preliminary results form a new survey on financial literacy. Consum Interest Annual, 48, 1–7.

Howlett, E., Kees, J., & Kemp, E. (2008). The role of self-regulation, future orientation, and financial knowledge in long-term financial decisions. Journal of Consumer Affairs, 42(2), 223–242.

Kaiser, T., & Menkhoff, L. (2016). Does Financial Education Impact Financial Literacy and Financial Behavior, and If so, When? Ssrn.

Kanserina, D. (2015). Pengaruh Literasi Ekonomi Dan Gaya Hidup Terhadap Perilaku Konsumtif Mahasiswa Jurusan Pendidikan Ekonomi Undiksha 2015. EJournal Undiksha.

Kapoor, J. R., Dlabay, L., Hughes, R., Stvenson, L., & Kerst, E. J. (2018). Personal Finance (7th ed.). McGraw-Hill International Edition.

Kholilah, N. Al, & Iramani, R. (2013). Studi Financial Management Behavior Pada Masyarakat Surabaya. 3(1), 69–80.

Khraim, H. (2010). Measuring Religiosity in Consumer Research From an Islamic Perspective. Journal of Economic and Administrative Sciences, 26(1), 52–78.

Klapper, L., Lusardi, A., & Van Oudheusden, P. (2015). Financial Literacy Around the World: Insights from the Standard & Poor’s Ratings Services Global Financial Literacy Survey. Standard & Poor’s Ratings Services Global FinLit Survey.

Lusardi, A., & Tufano, P. (2009). Debt Literacy, financial experiences, and overindebtedness.

Lusardi, A., & Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics and Finance, 14(04), 332–368.

Marcolin, S., & Abraham, A. (2006). Financial literacy research: current literature and future opportunities. Proceedings of the 3rd International Conference on Contemporary Business, Australia, September, 21–22.

O’Neill, B., Sorhaindo, B., Xiao, J. J., & Garman, E. T. (2005). Financially Distressed Consumers : Their Financial Practices , Financial Well being , and Health. Education.

Prawitz, A. D., Garman, E. T., Sorhaindo, B., Neill, B. O., Kim, J., & Drentea, P. (2006). InCharge financial Distress / Financial Well being Scale: Development , administration , and score interpretation. Financial Counseling and Planning, 17(1), 34–50.

Robb, C. a, & Woodyard, A. S. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, 205, 60–70.

Shinta, R. E., & Lestari, W. (2019). The Impact of Financial Knowledge, Lifestyle Pattern on Career Woman Financial Management Behaviour with Locus of Control as. Journal of Business & Banking, 8(2), 271.

Wilkes, R. E., Burnett, J. J., & Howell, R. D. (1986). On the meaning and measurement of religiosity in consumer research. Journal of the Academy of Marketing Science, 14(1), 47–57.

Yunadi, A. (2011). Analisis Pengaruh Tingkat Religiusitas terhadap Permintaan Pembiayaan Mudharabah (Studi Pedagang Sayur di Pasar Tradisional Giwangan Yogyakarta). JESI (Jurnal Ekonomi Syariah Indonesia), 1(2), 1–14.

Zemtsov, A. A., & Osipova, T. Y. (2016). Financial Wellbeing as a Type of Human Wellbeing: Theoretical Review. 385–392.
How to Cite
Lestari, W., & Silvy, M. (2022). MOSLEM BEHAVIOR TOWARD DEBT MANAGEMENT. International Journal of Islamic Business & Management, 6(1), 1-8.
Original Articles/Review Articles/Case Reports/Short Communications