The Effect of Islamic Financial Literacy on Saving Intention in Islamic Banks among Students at SMK Muhammadiyah 1 South Tangerang

Abstract

The low level of Islamic financial literacy in Indonesia, which reached only 43.42 percent in 2025,
lagging 23.04 percentage points behind conventional financial literacy (66.46%), has become
a particular concern among school-age students who are beginning to make financial decisions
independently. This study aims to analyze the effect of Islamic financial literacy on students’
interest in saving at Islamic banks at SMK Muhammadiyah 1 South Tangerang, as well as to
measure the magnitude of this effect. The study employed a descriptive quantitative approach
using a simple linear regression design, involving 75 twelfth-grade students selected through
purposive sampling from a population of 259 students across four vocational programs. Data
were collected through a Likert-scale questionnaire and analyzed using SPSS, including validity,
reliability, classical assumption, simple linear regression, t-test, F-test, and coefficient of
determination analyses. The results showed that Islamic financial literacy had a positive and
significant effect on students’ interest in saving (t-calculated = 3.238 > t-table = 1.993;
significance = 0.002 < 0.05), with the regression equation Y = 5.689 + 0.374X. However, the
coefficient of determination (R²) of 0.126 indicates that Islamic financial literacy explains only
12.6 percent of the variation in students’ saving interest, while the remaining 87.4 percent is
explained by factors outside the model. These findings indicate that increasing cognitive
understanding alone is insufficient to substantially encourage students’ interest in saving.
Therefore, Islamic financial education at the vocational high school level needs to be integrated
with interventions addressing social factors, trust, and accessibility of financial services