Factors Influencing the Saving Behaviour of Students at Private Universities

Abstract

The aim of this study was to find out what motivates undergraduates of private colleges in Klang Valley, Malaysia, to save. Among the factors considered in this study, financial literacy, financial socialisation of parents, and peer influence were examined as independent variables, while saving behaviour of the students at private universities in Klang Valley, Malaysia, was treated as the endogenous (dependent) variable. One online survey with several measures of saving behaviour, financial knowledge, parental financial socialisation, and peer influence reached 385 students (aged 18–26) in private Klang Valley universities. The researcher randomly selected from the population. Pearson’s correlation test was employed to measure the significance and direction of the linear correlation between each independent variable financial literacy, parental financial socialisation, and peer influence and saving behaviour. Regression analysis was further applied to examine the strength of associations between the independent and dependent variables. These tests were conducted using SPSS. Findings revealed that financial education, parental financial socialisation, and peer motivation shaped the saving behaviour of students at private universities in Klang Valley, Malaysia, positively and substantially, with financial education shaping saving behaviour more significantly than the other independent variables. In essence, the result showed that financially literate students saved more than their counterparts. The study highlights that savings behaviour among young adults not only reflects personal financial security but also contributes to sustainable growth in line with the Sustainable Development Goals (SDGs), as disciplined saving fosters responsible consumption (SDG 12), enhances financial resilience, and creates long-term capital that can be reinvested for national and societal development (SDG 8).