Factors Affecting University Students’ Saving Behaviour in Malaysia

Abstract

Financial complexity stems from a lack of financial literacy, excessive spending on unneeded products or impulse purchases, and sustaining an extravagant lifestyle, all of which have led to people resorting to loans to meet their requirements. Today, Malaysian young adults are indeed to be the main group of people who are currently enslaved by debt. Past studies mostly explored factors of personal saving behavior among Malaysian household and employees between 2011 and 2021. Studies conducted for young adults in the area of saving behavior are limited and not theory-driven, mainly focusing their level of financial literacy. To fill in this gap, this research aims to examine the saving behavior among Malaysian young adults. Using the Extended Theory of Planned Behavior (ETPB), this study attempts to investigate whether financial literacy (FL), family influence (FI), peer influence (PI), self-control (SC), and intention to save (ITS) have a substantial influence on university students' saving behavior (SB) in Malaysia. Self-administered questionnaires are used to obtain primary data. 161 university students from both private and public higher learning institutions participated in the study. The study revealed that four independent variables (FL, FI, SC, and ITS) have a positive relationship with dependent variables (ASB). With FL having the biggest influence on ASB among the five. At the same time, PI are found to be insignificantly associated with ASB. This study gives important insights for Malaysian university students in terms of recognizing the relevance of financial literacy, family influence, self-control, and intention to save on saving behavior..

Exploring The Factors Affecting the Financial Buffer Savings Behaviour Among University Students in Malaysia

“…Financial literacy is understanding financial concepts and focusing on integrating and using financial knowledge, such as personal financial management, budgeting, and saving, effectively [8] Previous studies conducted by Omar et.al (2019) [1], Yahaya, Zainol, Abidin and Ismail (2019) [9], Looi, Nguyen and Muthaiyah (2022) [10] and Ling (2022) [8] discussed financial literacy and relates it to saving behaviour. Omar et.…”

“…al (2019) [1] mentioned that when it comes to the use and management of money and wealth, those who are financially literate can make wise judgments and decisions. Adding to that, educating Malaysian university students about money matters can encourage improved savings behaviours (Looi et al, 2022) [10]. Ling (2022) [8] from Xiamen University Malaysia found that financially literate students are more attentive to saving.…”

Determinants of Sustainable Energy Saving Behavior among University Students in Malaysia: A Case Study of Management & Science University (MSU)

“…Many studies in different contexts have shown how social norms affect individual choices related to energy consumption. Understanding the nuances of social norms and how they motivate energy-saving behaviors among Malaysian university students is important for creating a campus culture that supports environmental sustainability (Looi et al, 2022;Wee & Choong, 2019). Similarly, perceived behavioral control, which pertains to a person's understanding of their capacity to execute a particular action and overcome obstacles, has a significant impact (Boomsma et al, 2019;Canova & Manganelli, 2020).…”