Journal of Islamic Economics, Finance, and Banking 97 Ihtifaz: Journal of Islamic Economics, Finance, and Banking The current issue and full text archive of this journal is available on IHTIFAZ at : https://doi.org/10.12928/ijiefb.v4i2.2622 Islamic Financial Literacy and Its Effects on Intention to Use Islamic Bank Vol. 4, No. 2, December 2021, pp. 97-110, ISSN p:2622-4755 e:2622-4798 Sariyatul Ilyana, Fitra Prasapawidya Purna, Dian Friantoro* Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia *dian.friantoro@mail.ugm.ac.id Article History Received : August 7, 2020 Revised : September 27, 2021 Accepted : December 6, 2021 Abstract Introduction: Islamic fnance in Indonesia has a rapid development in this millennial era. Islamic bank is starting to become an option. Islamic fnancial literacy has an important role for peoples, not least by students. Student as young generation will have a long future and must have the ability of fnancial skills. If someone takes a decision wrongly then it will result in a lack of retirement planning and poor borrowing behavior. Purpose: The aim of this study focuses on measuring the level of Islamic fnancial literacy, exploring the effects of the hopelessness, religiosity and fnancial satisfaction on Islamic fnancial literacy, and determining the effects of Islamic fnancial literacy on intentions to use Islamic banks among students. Methodology: The models being used are simple and multiple regression with ordinary least square method. 376 students samples are taken from Islamic universities in Yogyakarta. Findings: The results proved that students have a high Islamic fnancial literacy, hopelessness has a negative and insignifcant effect while religiosity and fnancial satisfaction have positive and signifcant effect toward Islamic fnancial literacy. The whole model has signifcant effect toward Islamic fnancial literacy. This study proved that Islamic fnancial literacy has a positive and signifcant effect on the intention to use Islamic bank. Paper Type: Research Article Keywords: Islamic Financial Literacy, Islamic Bank, OLS, Students.