Determinants of Intention to Comply with Islamic Financial Planning: An Exploratory Study

Abstract

Financial planning guides a person in making major financial decisions such as spending, borrowing and investing. It enables one to comprehend how each financial decision affects other aspects of one's finances. For the past few years, numerous studies attempted to explore public awareness about the importance of financial planning. Realizing that Islamic banking and finance has become a force to be reckoned with in the global economic scenario and play an essential role in a Muslim's financial needs, this study aims to explore the intention to comply with Islamic financial planning among Muslims by taking a group of Muslim educators in Melaka as target respondents. A quantitative study was initially performed among the educators to identify factors influencing their intention to comply with Islamic financial planning. Through a rigorous review of the existing literature, the factors identified as the determinants of intention to comply with Islamic financial planning are religious norms, Islamic financial literacy, attitude on Islamic financial products and services, and financial behaviour. As a result, it is crucial to look into extensive information regarding the awareness of Islamic financial planning.