EDUCATION ON ISLAMIC-BASED DIGITAL FINANCIAL MANAGEMENT TO PREVENT ILLEGAL LOANS AND FRAUDULENT INVESTMENTS AMONG GENERATION Z

Muhammad Ridwan (State Islamic Institute of Ternate)
Ajwan Muddin (State Islamic Institute of Ternate)
Hasbullah Hajar (State Islamic Institute of Ternate)
Sajjaj Sudirman (State Islamic Institute of Ternate)
Rahyuni Rahayu (State Islamic Institute of Ternate)
Novadayanti Sune (State Islamic Institute of Ternate)

Pakem : Jurnal Pengabdian Kepada Masyarakat
Vol 6 No 2 (2026): Pakem : Jurnal Pengabdian Kepada Masyarakat

This program was developed in response to Generation Z’s limited understanding of digital financial risks, which necessitated an educational intervention integrating digital financial literacy with Islamic financial ethics. The program contributes a practical model for strengthening digital financial awareness among youth while demonstrating how Islamic values can guide safer and more responsible financial behavior. The activities were implemented through presentations, case-based discussions, and practical exercises, enabling participants to evaluate digital financial products and apply Islamic principles in financial decision-making. The results indicated a significant improvement in participants’ understanding, with post-test scores reaching 81.25%, reflecting a 32.5% increase compared to pre-test results, alongside positive responses and enhanced critical thinking toward legal and illegal financial services. In conclusion, the program effectively improved digital financial literacy while reinforcing ethical and Islamic financial values, highlighting the importance of sustaining similar educational initiatives for Generation Z.