Factors influencing saving behaviour among university students during their stay at the university: Case study of third year students at Makerere University

Abstract

Over the years, numerous researchers have studied on the determinants of personal saving behavior among the households and employees rather than young adults such as university students. Therefore, this research is aims to investigate whether different factors like financial literacy, parents' encouragement, parents' education levels, ease to save affects the saving behaviour of university students in Makerere. This is because one's saving behaviour varies when he or she has different level of financial knowledge. Besides, parents play an important role in affecting their children in the conduct of saving. Furthermore, friends can have a great impact on saving behaviour of university students due to their close relationship with their friends other than parents. Lastly ease to save plays an important role for university students to practice saving. In this report, primary data was used in that a questionnaire designed using Kobocollect was issued to 225 respondents who were selected from a population of 513 students using Yamenes formular from which a conclusion was drawn. Descriptive statistics like frequency and percentages were used for univariate analysis, Pearson chi square was used for bivariate analysis and multinominal logistic regression analysis was used for multivariate analysis. Knowledge and use of financial institutions, parents' level of education, parents' support towards saving, friends' influence to save and ease to save have a significant relationship with the saving behavior and the ease to save was the strongest factor influencing saving behavior since people can have knowledge but still find it hard to save. Based on my research, establishing saving accounts with high saving interests should be emphasized because having knowledge about savings is different from actual saving therefore this makes it easy for individuals to save as they are sure to get some returns other than saving with no returns.