God says in the Holy Quran : “To those weak of understanding make not over your property, which Allah hath made a means of support for you, but feed and clothe them therewith, and speak to them words of kindness and justice. Make trial of orphans until they reach the age of marriage; if then ye find sound judgment in them, release their property to them; but consume it not wastefully, nor in haste against their growing up. If the guardian is well-off, Let him claim no remuneration, but if he is poor, let him have for himself what is just and reasonable.When ye release their property to them, take witnesses in their presence: But all-sufficient is Allah in taking account.”
The foregoing two verses of the Holy Quran, taken from Chapter 4 of Surah An-Nisa (The Women), verses 5-6, are based on the English translation by Abdullah Yousuf Ali. Many Muslim scholars viewed that these verses are very comprehensive and clear in their meaning, in providing the Muslims’ Community at the time of the Prophet the guidance of how the wealth or properties of orphans should be entrusted. Invariably, even though the literal Quranic text dealt with how to manage the wealth of orphans, the guidance and lessons therein inevitably applicable in the contemporary context of wealth management and more importantly; in the promotion of a financial literate Muslims’ Community (Ummah).
In essence, the verses propagate that under no circumstances should the management of wealth or property be entrusted or managed by people of “weak understanding”. Simply, it means that Islam views wealth management as one of the vital aspects not only to an individual but also in managing the soceity as a whole; thus, this task should be carried out properly and efficiently by someone who is not only of sound mind but someone who is apt in financial knowledge and skills, as what we understood today by the notion of being financial literate. If we read further into the verses, we will also find God commands on the need to test the orphans before the properties can be released to them. This command invariably reinforce Islam’s standpoint on the significance of financial literacy, and therefore, it is inevitable for all Muslims to include financial literacy as one of the important aspects in their life as to fulfill the religious’ duties.
Financial literacy is becoming an important global agenda in this decade. The changing sosio-economic environment and the unprecendented sophistication in financial landscape are among the reasons why one must equip oneself and his family with personal financial management knowledge and skills. On global scale, the Organisation of Economic Co-operation and Dvelopment (OECD) has been embarking on various initiatives in promoting financial literacy for every communities around the world. Various activities and initiatives such as surveys, awareness campaigns, and financial education programmes have been initiated in collaboration with governments and nationals’ financial and monetary authorities. On local front, this importance initiative is being spearheaded by Bank Negara Malaysia. Apparently, Under the Bank’s Financial Sector Blueprint covering the period of 2011 – 2020, a far-reaching initiative that emphasis on empowering financial consumers through effective financial education and strenghtened consumer protection frameworks had been included as one of the nine focus areas in Malaysia’s financial landscape for the next decade. Indeed, proficiency in managing personal finance is crucial in contributing towards greater empowerment and competent fnancial decision by the households and thus, should they acquire this skill, banks and financial institutions in the country will be more responsive to their demand.
The reality of today’s environment may motivate us to become financial literate. We should be mindful that today, if one does not understand personal finance or if one is financial illiterate, one may be easily become prey to the irresponsible acts of the financial scammers. In recent years, we had heard news of many people in our community becoming victims of financial scammers, that results in huge amount of financial losses. Sadly to hear that many households had lost their hard-earned income to various financial and investment scams. They had been working so hard spanning many decades in their lives, alas the fruits of their hard-earned labour dissapear in no time. These sad episodes in our society will continue to be a prevalent feature in the country, lest our soceity does not take financial literacy seriously. Scammers relentlessly prowling for victims, as they have the edge over a financial illiterate community.
Some surveys that have been conducted around the world provide evidences that many people acquire financial knowledge and skills through “try” and “error” approaches. Some households also regard financial knowledge and skills can be acquired through “natural process” or this skill is just a “natural instinct” to a human being. Meaning which, learning financial knowledge and skill formally are unnecessary. This may be true in the past decades, but today, a formal financial education will inevitably serve us with many benefits.
In conclusion, the verses from the Holy Quran quoted earlier in this article provide a clear message and guidance that a formal personal finance education is vital for a Muslim not only to fulfill his wordly affairs, but also religious duties. On larger scale, financial literacy is significant as it will lead to the prosperity of the Muslims’ Ummah.