FACTORS INFLUENCING SAVINGS BEHAVIOR AMONG UNIVERSITY STUDENTS (A CASE STUDY OF PRESIDENT UNIVERSITY STUDENTS)

Abstract

The purpose of this study is to determine factors that influencing savings behavior among university students of President University. In assessing the savings behavior of the President University students, variables used were: allowance (X1), parental socialization in savings behavior (X2), Emergency precautions (X3), saving goals (X4) and financial literacy (X5). Primary data were collected through survey conducted from December 17th to December 24th 2014. The respondents of this research is limited to President University students from batch 2011-2014. A total of 200 respondents’ data were collected, using non-probability sampling. The data collected is analyzed using quantitative analysis which includes, validity and reliability test, descriptive analysis, classical assumption test, and multiple regression test to test the hyposkripsi through T-test, F-test, and coefficient of determination (R2). Data analysis technique used were linear regression analysis that serves to prove the research hyposkripsi. Results of the analysis found that from five independent variables, only variable allowance and financial literacy that have a partial significant relationship with savings behavior among President University students. In conclusion, savings behavior among President University students can be predicted by their allowance and financial literacy they possessed. Parental socialization in saving behavior is not significant because of less appreciation and monitoring from parents. Students are well-aware of emergency precautions and saving goals however they are not saving their money for those reasons.