Azzura Kahfi Ilzam

Sharia financial literacy pertains to individuals’ capacity to manage their finances, partake in Sharia-compliant agreements, and make investments based on Islamic tenets for long-term prosperity. This study explores the relationship between Sharia financial literacy, financial stress, financial behavior, and financial well-being among Islamic university students in Medan, Indonesia. Three hundred seventy-eight (378) students from various regions of Medan, Indonesia, were used as the research sample. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Telegram) in which the Google Forms link is shared. The Likert scale measures indicators in responses to statements and questions. The analysis was conducted using SEM with PLS 3.0 software. The findings show a significant positive effect of Islamic financial literacy on financial behavior and well-being (p < 0.05). However, financial stress does not significantly impact financial behavior and financial well-being (p > 0.05). In addition, financial behavior positively affects financial well-being among university students (p < 0.05). This study also demonstrates that Islamic financial literacy indirectly improves financial well-being through its influence on financial behavior (p < 0.05). However, financial stress does not indirectly affect financial well-being through financial behavior (p > 0.05).

Acknowledgment
This research was funded in 2024 by the Ministry of Education, Culture, Research and Technology of the Republic of Indonesia under the Basic Research – Regular (PF-R) category. Thanks also go out to the different tiers of administration at Universitas Muhammadiyah Sumatera Utara, such as the administration of the School of Economics and Business and the staff at the Institute for Research and Community Service (LPPM).