Effect of social influence on the saving behaviour of freelancing undergraduate students, mediated by financial literacy and self-control

Abstract

Currently, India is among the countries with the largest youth population with 65% of the people aged below 35 years. These youths engage themselves in a multitude of things which generation-x was not aware. Their daily routine, study habits, entertainment, computer knowledge, and financial affairs are different from that of earlier generations. There is a need to study their financial situation and saving habit as their approach towards enjoyment, recreation, and lifestyle are influenced by factors like social media and popular culture. This study aims to find the mediation effect of financial literacy and self-control on the relationship between social influence and saving behaviour of undergraduate (UG) students, who are freelancing while pursuing their studies. The study obtained 357 responses to questionnaires through purposive sampling method. The study adopted causal mediation research design and employed mediation analysis to find the direct, indirect, and total effects of the relationship between social influence and saving behaviour among freelancing UG students. The results of the study revealed a partial mediation effect, indicating that the social influence not only had a direct impact on the saving behaviour of UG students in India, but also mediated it through financial literacy and self-control. Further research could focus on understanding students' knowledge of digital-financial management, as digitisation of the financial sector is rapidly expanding.