Understanding Generation Z's Financial Behavior within the Halal Economy: A Literature Review

Abstract

The rapid expansion of the halal economy has increased the importance of understanding the financial behavior of Generation Z as future contributors to the development of Islamic finance. Despite growing awareness of halal products and services, many young individuals demonstrate diverse financial attitudes and practices shaped by educational, economic, social, and religious factors. This study aims to explore and understand the financial behavior of Generation Z within the context of the halal economy through a review of relevant literature related to Islamic finance, financial literacy, religiosity, and financial behavior. A qualitative descriptive approach was employed through literature review and thematic analysis of previous studies related to Generation Z, Islamic finance, and the halal economy. The findings from the reviewed literature indicate that Generation Z's financial behavior is influenced by Islamic financial literacy, income conditions, religiosity, family environment, and exposure to digital financial technology. Furthermore, previous studies generally indicate that Islamic finance is perceived as an important component of the halal economy; however, practical challenges such as limited financial resources and varying levels of financial literacy continue to affect financial decisions among Generation Z. The study concludes that strengthening Islamic financial education and increasing awareness of halal financial practices are essential to encourage responsible financial behavior among Generation Z. These findings contribute to the growing literature on Islamic finance, youth financial behavior, and the development of the halal economy in Indonesia.