Determinants of Saving Behavior: An Empirical Study among Private Universities Students in Selangor

Abstract

Nowadays, most of the university students are already accumulating substantial debts from higher education fee loans, personal bank loans or overused of credit cards. The saving behaviour among students is significantly important as they are easily exposed to be blacklisted borrowers. Therefore, this study examines the factors that influence students’ saving behaviour among private universities in Selangor. Six variables are included namely; education level, programme, gender, race, family background and financial literacy. The result indicates that saving behaviour is influenced by education programme, family background and financial literacy. On the ground of determination of core problems, educators and regulators are able to develop appropriate programs and design relevant financial courses to help students in managing personal money and avoid the debt tracks. Furthermore, retail banks can therefore develop more appropriate marketing strategies to tap and penetrate young savers in Malaysia