THE EFFECTS OF BEHAVIORAL FACTORS ON SAVING BEHAVIOR: ROLE OF SAVING INTENTION AS A MEDIATOR

Abstract

Over the years, several researchers have studied on the determinants of personal saving behaviour among the households and employees rather than young adults such as university students. Despite this there are few studies that focus on the financial behaviour of university students, most of the studies were not based on any theory and merely focused on single factor. Therefore, this research is aimed to investigate whether financial literacy (FL), parental socialization (PS), peer influence (PI) and self-control (SC) have significant influence on the saving behaviour (SB) where as intention to save play a role of mediator by applying the Theory of Planned Behaviour (TPB). Primary data was collected through self-administered questionnaire, Pearson Correlations and Multiple Regression Analysis were employed to identify whether native of relationship of variables with saving behaviour in presence of intention as a mediator of university students. The findings show that all the FL, PS, PI and SC have positive relationship with SB in the presence of saving intention as a mediator. In practical, this research can contribute to the retail banks in designing effective strategies to penetrate young savers specifically university students.