Factors influencing saving behaviour among youth in Malaysia

Lai Wei Sieng, Nurul Izzah Syakirah Shahirul Basir

Abstract


Saving is important not only for individuals and households but also for the economic development of a country. In Malaysia, youth generally lack savings and show little interest in saving. This situation has negatively affected them, especially during and after the COVID-19 pandemic. This research paper aims to analyze the factors that influence the saving behaviour of young people in Malaysia. Data was collected from 1,200 respondents across the country. Questionnaires were used as the primary instrument and stratified sampling techniques were applied. The target sample consisted of Malaysians aged between 15 and 40 years old. Partial Least Squares Structural Equation Modeling (PLS-SEM) and binary regression were used to explore the factor structure of the variables. The questionnaire was divided into four sections: the first covered demographic information; the second focused on the determinants influencing saving behaviour; and the remaining sections addressed the factors that influence saving behaviour and the intention to save. The findings indicate that financial management, peer influence, self-control and demographic background significantly affect saving behaviour among young Malaysians. Overall, the results suggest that greater exposure and education about the importance of saving are needed, particularly in the post-COVID-19 era to raise awareness and encourage more young people to engage in saving practices.

 

Keywords: Financial literacy, financial management, peer influence, saving behaviour, self-control


Keywords


Financial literacy, financial management, peer influence, saving behaviour, self-control

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References


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