Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective

Households’ financial problem was perceived to be solved by taking other source of fund such as debt. In Islam, taking debt should be considered as the last resource when other sources were not available. Islam gives solution for those who have financial problem. Giving just small amount of money wo...

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Main Authors:	Arsyianti, Laily Dwi, Kassim, Salina, Adeyemi, Adewale Abideen
Format:	Article
Language:	English
Published:	Bank of Indonesia 2018
Subjects:	BP173.75 Islam and economics HB126.4 Islamic Economics HB846 Welfare theory
Online Access:	http://irep.iium.edu.my/11980/ http://irep.iium.edu.my/11980/ http://irep.iium.edu.my/11980/1/11980_Debt%20taking%20and%20charity-giving.pdf

id	iium-11980
recordtype	eprints
spelling	iium-119802019-07-11T03:09:55Z http://irep.iium.edu.my/11980/ Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective Arsyianti, Laily Dwi Kassim, Salina Adeyemi, Adewale Abideen BP173.75 Islam and economics HB126.4 Islamic Economics HB846 Welfare theory Households’ financial problem was perceived to be solved by taking other source of fund such as debt. In Islam, taking debt should be considered as the last resource when other sources were not available. Islam gives solution for those who have financial problem. Giving just small amount of money would give barakah to the giver. Charity-giving is not privilege for the rich people, but also for those in dire conditions. This paper attempts to explore whether low-income households’ perception on consecutive debt-taking influences their perception on regular charity-giving especially to achieve stipulated outcomes, i.e. households’ financial resilience. Structural Equation Modelling (SEM) is employed to analyse 1780 data from respondents across six areas in Indonesia. Low-income households perceived consecutive debt-taking to have negative relationship with regular charity-giving and positive relationship with outcomes (households’ financial condition and lifestyle satisfaction). Meanwhile, regular charity-giving has negative relationship with the outcomes when consecutive debt-taking intervene the relationship. Financial education and selection of financing institution have been proven to have relationships with variables which influence both regular charity-giving and consecutive debt-taking behaviours. As recommendation, charity education or sharing values should be included in the current financial education program. Formal financial institutions and social finance institution should also encourage supervision and continuously give financial education to social funds receivers. Bank of Indonesia 2018-08 Article PeerReviewed application/pdf en http://irep.iium.edu.my/11980/1/11980_Debt%20taking%20and%20charity-giving.pdf Arsyianti, Laily Dwi and Kassim, Salina and Adeyemi, Adewale Abideen (2018) Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective. Journal of Islamic Monetary Economics and Finance, 4 (1). pp. 1-22. ISSN 2460-6146 E-ISSN 2460-6618 https://jimf-bi.org/index.php/JIMF/article/view/739/721
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	BP173.75 Islam and economics HB126.4 Islamic Economics HB846 Welfare theory
spellingShingle	BP173.75 Islam and economics HB126.4 Islamic Economics HB846 Welfare theory Arsyianti, Laily Dwi Kassim, Salina Adeyemi, Adewale Abideen Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
description	Households’ financial problem was perceived to be solved by taking other source of fund such as debt. In Islam, taking debt should be considered as the last resource when other sources were not available. Islam gives solution for those who have financial problem. Giving just small amount of money would give barakah to the giver. Charity-giving is not privilege for the rich people, but also for those in dire conditions. This paper attempts to explore whether low-income households’ perception on consecutive debt-taking influences their perception on regular charity-giving especially to achieve stipulated outcomes, i.e. households’ financial resilience. Structural Equation Modelling (SEM) is employed to analyse 1780 data from respondents across six areas in Indonesia. Low-income households perceived consecutive debt-taking to have negative relationship with regular charity-giving and positive relationship with outcomes (households’ financial condition and lifestyle satisfaction). Meanwhile, regular charity-giving has negative relationship with the outcomes when consecutive debt-taking intervene the relationship. Financial education and selection of financing institution have been proven to have relationships with variables which influence both regular charity-giving and consecutive debt-taking behaviours. As recommendation, charity education or sharing values should be included in the current financial education program. Formal financial institutions and social finance institution should also encourage supervision and continuously give financial education to social funds receivers.
format	Article
author	Arsyianti, Laily Dwi Kassim, Salina Adeyemi, Adewale Abideen
author_facet	Arsyianti, Laily Dwi Kassim, Salina Adeyemi, Adewale Abideen
author_sort	Arsyianti, Laily Dwi
title	Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
title_short	Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
title_full	Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
title_fullStr	Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
title_full_unstemmed	Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective
title_sort	debt taking and charity-giving among low-income households: strengthening resilience in islamic perspective
publisher	Bank of Indonesia
publishDate	2018
url	http://irep.iium.edu.my/11980/ http://irep.iium.edu.my/11980/ http://irep.iium.edu.my/11980/1/11980_Debt%20taking%20and%20charity-giving.pdf
first_indexed	2023-09-18T20:21:12Z
last_indexed	2023-09-18T20:21:12Z
_version_	1777408118995550208

Debt taking and charity-giving among low-income households: strengthening resilience in Islamic perspective

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