Toward Islamic Wealth Management: Insights from Islamic Family Financial Socialization
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Abstract
This conceptual paper explores the role of Islamic family financial socialization in influencing effective Islamic wealth management, with a focus on the mediating effects of Islamic financial literacy and Islamic financial attitude. Drawing upon Family Financial Socialization Theory and Behavioural Finance Theory, this study proposes a framework in which Islamic family financial socialization influences individuals’ financial behaviour in a Shariah-compliant context. Specifically, the study model posits four key pathways: (1) Islamic family financial socialization enhances Islamic financial literacy, which in turn leads to improved Islamic wealth management practices; (2) Islamic family financial socialization fosters positive Islamic financial attitudes, which subsequently promote sound Islamic wealth management decisions; (3) Islamic financial attitude positively influences Islamic financial literacy, further contributing to effective Islamic wealth management; and (4) both Islamic financial literacy and Islamic financial attitude serve as mediators in the relationship between Islamic family financial socialization and Islamic wealth management, explaining how early familial influences form Shariah-compliant financial decision-making. By integrating these constructs, this paper aims to enhance understanding of how Islamic financial behaviour is developed and sustained. The proposed model offers insights for policymakers, educators, and financial institutions to strengthen Shariah-compliant wealth management through family-based financial socialization, Islamic financial literacy, and positive financial attitudes
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