Impact of Financial Literacy and Parental Socialization on the Saving Behavior of University Level Students

Afsar, Junaid; Chaudhary, Ghulam Mujtaba; Iqbal, Zamir; Aamir, Muhammad

doi:10.26710/jafee.v4i2.526

Cited by 14 publications

(18 citation statements)

References 24 publications

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“…Financial literacy refers to understanding the main financial terms and concepts needed in managing daily life (Brigham & Houston, 2014). As explained by Afsar et al (2018), financial literacy is a skill that can help individuals make effective financial decisions. Alwi et al (2015) revealed that parental socialization increases children's financial literacy.…”

Section: Theoretical Framework and Empirical Studiesmentioning

confidence: 99%

“…Alwi et al (2015) revealed that parental socialization increases children's financial literacy. According to Afsar et al (2018) discussions between parents and children about financial problems affect saving and borrowing habits. Homan (2016) argues that parental socialization can help increase individuals' savings and reduce their borrowing.…”

Section: Theoretical Framework and Empirical Studiesmentioning

confidence: 99%

“…In developing countries, saving is essential to household welfare (Afsar, Chaudhary, Iqbal, & Aamir, 2018). Awareness of saving can be owned by every human being, one of which is the student.…”

Section: Introductionmentioning

confidence: 99%

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Students' Saving Behaviour: What Are the Motives That Influence Them to Save?

Hartono

Isbanah²

2022

JEBIK

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This study aims to determine the determinants of saving behavior using financial literacy as a mediating variable. The endogenous variable in this study was saving behavior, while the exogenous variables were financial literacy, parental socialization, peer influence, and self-control. The respondents were 300 students from the Faculty of Economics of Indonesia. Data were analyzed by Structural Equation Modelling (SEM) using STATA software. The results show that parental socialization and peer influence positively affect financial literacy, whereas self-control does not. Financial literacy directly affects saving behavior. Parental socialization and peer influence directly influence saving behavior. The results provide a new understanding of the importance of financial literacy in encouraging student-saving behavior. The role of parents and peers in the environment is essential for improving students’ financial literacy and saving behavior. The banking industry can play a role in increasing financial literacy through collaboration with universities through a virtual account program and the socialization of savings to students. It is also an opportunity for saving service providers to introduce their products to consumers early.JEL : G41, G410.ABSTRAKTujuan penelitian ini untuk mengetahui determinan dari saving behaviour dengan menggunakan financial literacy sebagai variabel mediasi. Variabel endogen dalam penelitian ini adalah saving behaviour sedangkan variabel eksogen, yaitu financial literacy, parental socialization, peer influence, dan self-control. Responden penelitian ini adalah 300 mahasiswa Fakultas Ekonomi di Indonesia. Data dianalisis dengan Structural Equation Modeling (SEM) menggunakan software STATA. Hasil penelitian menunjukkan bahwa parental socialization dan peer influence berpengaruh positif terhadap financial literacy, sedangkan self-control berpengaruh negatif terhadap financial literacy. Financial literacy juga terbukti berpengaruh secara langsung pada saving behaviour. Parental socialization dan peer influence juga memiliki pengaruh langsung pada saving behaviour. Penelitian ini memberikan pemahaman baru mengenai pentingnya literasi keuangan untuk mendorong perilaku menabung bagi mahasiswa. Peran orang tua dan teman sebaya menjadi faktor penting dalam menumbuhkan literasi keuangan dan perilaku menabung mahasiswa. Industri perbankan dapat berperan dalam meningkatkan financial literacy melalui kerjasama dengan universitas dalam bentuk program virtual account sekaligus untuk sosialisasi tabungan ke mahasiswa. Ini juga menjadi peluang bagi penyedia layanan tabungan untuk memperkenalkan produknya ke konsumen lebih dini.Kata Kunci: literasi keuangan, peer influence, parental socialization, self-control, saving behaviour.

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Section: Theoretical Framework and Empirical Studiesmentioning

confidence: 99%

Section: Theoretical Framework and Empirical Studiesmentioning

confidence: 99%

See 1 more Smart Citation

Students' Saving Behaviour: What Are the Motives That Influence Them to Save?

Hartono

Isbanah²

2022

JEBIK

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“…Parents role has been categorized in two ways, some parents do not allow children to be involved in decision, as parents take all decisions, and other category of parents, are interactive in nature, they try to teach their children regarding financial matters (Ribeiro, Fonseca, & Soares 2018). Similarly, Afsar, Chaudhary, Iqbal, and Aamir (2018) also found that, parents with interactive characteristics also positively associated with saving. Robertson-Rose (2020) also identified dual nature of parents related to financial matters which can have both positive as well as negative effects on savings.…”

Section: Family Background and Savingmentioning

confidence: 99%

Saving Model Under Financial Literacy

Shah¹,

Murugiah²,

Ahmad³

2021

IJARBSS

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The study attempted to assess how family background, and peer role affect the saving decisions of working youth in Pakistan. Current study also attempted to measure the effect of financial literacy as mediator between relationship of peer role and family back ground with saving decisions of working youth. Working youth among different organizations with total of 309 responses were collected through stratified random sampling. Using structural equation modeling through Smart PLS3, the study found that the significant effect of peer role on saving, and financial literacy. On other side family background shown insignificant effect on saving decisions but significant effect on financial literacy. Furthermore this study also found significant effect of financial literacy on saving decisions. Additionally this research shown mediated effect of family background and peer role on saving decisions through financial literacy. Findings of this study shaded the light that how family background, peer role have influenced saving decisions directly and indirectly through mediation by financial literacy. This research framework was tested under life cycle hypothesis and relative income hypothesis. Further policy makers could design policies and arranging training workshops for financial literacy awareness among working youth, as it is already highlighted that youth is also lacking in financial literacy (

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“…Financial literacy is a major construct in finance, business as and a social construct and has many important implications. As a financial construct, financial literacy helps individuals manage spending and savings (Afsar, Chaudhary, Iqbal, & Aamir, 2018;Ali, Rahman, & Bakar, 2015;Mahdzan & Tabiani, 2013;Xiao & Porto, 2017), plan retirement (Agnew, Bateman, & Thorp, 2013;Boisclair, Lusardi, & Michaud, 2017;Brown & Graf, 2013;Crossan, Feslier, & Hurnard, 2011;Klapper & Panos, 2011;Lusardi & Mitchell, 2007, 2011Sekita, 2011;, plan investments (Almenberg & Dreber, 2015;Jariwala, 2013;Van Rooij, Lusardi, & Alessie, 2011), make household decisions, and increase wealth or returns on wealth (Behrman, Mitchell, Soo, & Bravo, 2012;Grohmann & Schoofs 2021;Jappelli & Padula, 2013). As a social construct, it reduces stress, illness, financial disputes, abuse of children, and conflicts among families (Fox, Bartholomae, & Lee, 2005).…”

Section: Introductionmentioning

confidence: 99%

Potential Sub-Topics and Trend Topics in Financial Literacy: A Bibliometric Analysis

2022

ijafr

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This study identifies the potential sub-topics and trend-topics in the financial literacy field through bibliometric analysis using a web-based application, Biblioshiny, on a sample of 787 documents retrieved from Web of Science database by Clarivate Analytics for the timespan 2001–2021 with the keyword “financial literacy”. The study reveals that the numbers of publications are increasing substantially with time. The results show that the term financial literacy is crucially associated with many keywords that have emerged as important subtopics in this field in the last decade. Studies related to gender differences in financial literacy and the impacts of financial literacy recognized as trend topics in 2020-2021. The study identifies the most active journals, authors, popular documents, and contributing countries and institutions in this field and also recognizes the strong intellectual and social structure of research in this field. Further the findings suggest that India has very few publications in this field, and there is ample scope for financial literacy research. Researchers in India must focus on financial literacy in the context of gender and impact. Different from the past studies this study explores those crucial keywords that have emerged as potential subtopics and are gaining importance in financial literacy field.

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Impact of Financial Literacy and Parental Socialization on the Saving Behavior of University Level Students

Cited by 14 publications

References 24 publications

Students' Saving Behaviour: What Are the Motives That Influence Them to Save?

Students' Saving Behaviour: What Are the Motives That Influence Them to Save?

Saving Model Under Financial Literacy

Potential Sub-Topics and Trend Topics in Financial Literacy: A Bibliometric Analysis

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