Factors Affecting the Saving Behavior of Among the Students of Makerere University: A Case Study of School of Statistics and Planning Second Year Students

Abstract

The study focused on the financial behaviour of university students, Therefore, this research is aims to investigate whether financial literacy (FL), parental socialization (PS) and peer influence (PI) have significant influence on the saving behaviour (SB) of university students in Makerere. It used Primary data are collected using self-administered questionnaire. The samples comprised 100 students from School of Statistics of Makerere University Meanwhile, Pearson Correlations and Multiple Regression Analysis are employed to identify whether the four factors have relationship with the saving behaviour of university students. The findings show that all the FL, PS and PI have positive relationship with SB while PS has the greatest impact on SB among the four independent variables. This signifies that parents are playing important roles in ensuring their children to establish saving behaviour. In practical, this research can contribute to the retail banks in designing effective strategies to penetrate the young savers specifically university students. Besides, it also enlightens the policy makers to stimulate savings among the university students via raising their financial literacy. Last but not least, it also provides insights to the parents in ensuring their children to foster a sound saving behaviour This study has suggested several directions to foster a saving culture among university student which in turn will bring about social well-being for them and economic development for the country since investment equals saving as per the Harold-Domar economic model. The researcher suggested that university carried out a financial literary week among different colleges which is mandatory for very students and this can be in conjunction with retail banking providers or investment banks additionally Parents should always encourage their children not to spend impulsively and also guide them in managing their financial matters since charity begins at home