Exploring the Role of Sharia-Based Approaches in Promoting Household Financial Literacy

Abstract

This study seeks to clarify the concept and role of a sharia-based approach in improving financial literacy among Muslim households. The background of this research is based on the low level of financial literacy among Muslims in Indonesia, despite having fairly broad access to financial services. A sharia-based approach offers an alternative paradigm that emphasizes the balance between material and spiritual aspects, based on the values ​​of justice, honesty, and social responsibility. This study uses qualitative methods with a phenomenological approach to understand the subjective experiences of five housewives in Palopo City in managing family finances based on sharia principles. The results show that sharia-based financial literacy contributes significantly to the development of ethical and sustainable financial understanding, attitudes, and behavior. The informants apply the principles of halal (permissible) and haram (forbidden), avoid usury (riba), invest in halal (lawful) ways, and pay zakat (alms) and sadaqah (charity) as a form of spiritual responsibility. This approach not only improves technical financial management skills but also strengthens the moral and spiritual awareness of Muslim families. Thus, sharia-based financial literacy is an important foundation for creating family economic resilience and social welfare that is just and blessed.