The Influence of Islamic Financial Literacy and Halal Lifestyle on Saving Behavior among Muslim Millennials in Cirebon City, Indonesia

Abstract

This study aims to examine the influence of Islamic Financial Literacy and Halal Lifestyle on Saving Behavior among Muslim millennials in Cirebon City, Indonesia. The research adopts a quantitative explanatory design with a deductive approach, collecting data from 200 respondents using purposive sampling. Data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0. The results reveal that Islamic Financial Literacy has a positive and significant effect on Saving Behavior (β = 0.533, p < 0.001), indicating that understanding Islamic financial principles encourages disciplined saving. Similarly, Halal Lifestyle significantly affects Saving Behavior (β = 0.391, p < 0.01), suggesting that ethical consumption and moderation strengthen financial self-control. The combined effect of both predictors explains 56% of the variance in Saving Behavior (R² = 0.56), highlighting that financial competence and ethical values are mutually reinforcing in shaping responsible economic conduct. The findings enrich Islamic behavioral finance theory by integrating literacy, ethics, and behavior under the framework of Maqasid al-Shariah—specifically hifz al-mal (preservation of wealth). Practically, the study provides insights for Islamic financial institutions and educators to design programs that combine literacy development with halal lifestyle promotion to foster ethical and sustainable saving culture among Muslim millennials.