Measuring Financial Knowledge Among Muslim Women: The Case of Indonesia and Malaysia

Abstract

Financial literacy is taking an important role in supporting the development of women's empowerment. To determine the action for financial education for women, the level of financial literacy among women is needed to be observed. This study aims to measure the level of financial knowledge among Muslim women in Indonesia and Malaysia. A quantitative method of study is employed by distributing 411 questionnaires that consists of Islamic financial knowledge and general financial knowledge questions. As the sample of this study focuses on women in Indonesia and Malaysia, the findings of this study could not be generalized to other Muslim women in other countries. The research found that Muslim women in Indonesia and Malaysia have a moderate Islamic and general financial knowledge level. Several areas of weaknesses found in this study are; the understanding of the role of parties in mudharabah contract, knowledge on zakat, and the simple time value of money calculation. These three areas of weaknesses could be emphasized in the financial education program.