Digital Transformation of Hajj Financial Planning: Modelling Sharia-Compliant Hajj Financial Planning For Generation Z

Abstract

This study examines how Islamic financial literacy influences Generation Z’s preparedness for the Hajj pilgrimage and evaluates their understanding of essential Hajj and Sharia finance concepts. Using a qualitative approach supported by interviews, FGDs, and document analysis, the research provides a clear overview of how young people perceive Islamic financial principles and plan for Hajj-related expenses. The findings show that although Gen Z is highly exposed to digital information, their comprehension of Islamic finance remains insufficient. Prior to the FGD, their literacy level averaged 60% and rose to 88% afterward, demonstrating that targeted educational activities can significantly improve their knowledge. To mitigate these shortcomings, the study developed a digital Hajj-saving model based on the Wadiah yad dhamanah contract. This model emphasizes consistent saving behavior rather than large deposit amounts. Simulations reveal that monthly contributions of IDR 100,000–300,000 allow younger members of Gen Z to reach the IDR 25 million Hajj registration threshold within 7–20 years, while older individuals require higher monthly savings due to shorter preparation times. The research also formulates an investment framework combining Islamic deposits, Sharia money market mutual funds, and Sharia fixed-income mutual funds, adjusted to different age groups and investment horizons. The proposed digital model integrates automated calculations, progress tracking, reminders, Sharia education, and connectivity with Islamic financial institutions. Overall, the study highlights the importance of enhancing Islamic financial literacy and expanding digital financial planning tools to strengthen Hajj readiness among Generation Z.