Financial Literacy Crisis on the Use of Online Loans (Pinjol) Among Generation Z from an Islamic Economic Perspective

Abstract

The rise of consumptive behavior among Generation Z has become increasingly alarming, especially amidst low levels of financial literacy. A fast-paced lifestyle and exposure to social media have shaped unhealthy financial habits, such as the use of pay later services, digital loans, and impulsive spending. This study aims to explore the financial literacy crisis and its impact on the consumptive behavior of Gen Z from an Islamic economic perspective. Employing a qualitative approach, the research relies on literature studies and content analysis of academic journals, survey reports, and Islamic legal texts. Findings reveal that low financial literacy leads to patterns of excessive consumption that contradict Islamic economic values, such as the prohibition of israf (wastefulness) and the encouragement of moderation (al-iqtisad). Islamic economics offers alternative solutions through Sharia-based financial education, the internalization of spiritual values in wealth management, and the proactive role of families and Islamic institutions in raising financial awareness. This study highlights the importance of integrating Islamic values into financial education to foster a generation that is not only financially literate but also ethically and spiritually responsible.