Transformation of Muslim Family Finance: A Comparative Study of the Sakinah Finance Model in Coastal and Urban Communities
Tanza Dona Pertiwi, Muhammad Faizul Mamduh, Disca Aprilinda Cipto, Muhammad Cholil, Siti Zulaikha

Departement of Sharia Economics
Faculty of Economics and Business
Universitas Airlangga

Abstract

Financial conflicts within families often serve as a primary trigger for divorce between spouses, with fragile economic stability playing a significant role in undermining household harmony. The income limitations faced by couples are a critical factor influencing household financial management. This financial instability, in turn, hampers the achievement of overall family well-being. This study aims to analyze the impact of financial stability on the well-being of Muslim families, utilizing the Sakinah Finance model as an analytical framework. The study will compare families residing in coastal and urban areas to understand how different environments influence household financial management. A quantitative approach is employed in this research, with Structural Equation Modeling Partial Least Square (SEM-PLS) as the analytical tool to examine the relationships between variables affecting financial stability and family well-being. The findings of this study are expected to provide deeper insights into the factors influencing the well-being of Muslim families and offer recommendations for improving household financial management across various environmental contexts.

Keywords: Financial Management- Financial Well-being- Muslim Families- Sakinah Finance Model- Coastal and Urban Areas

Topic: Islamic finance and banking