Determinants of savings behavior among university students at Makerere University school of statistics and planning.

Abstract

Saving is a critical financial practice for university students because it supports day-to-day needs, academic expenses, and future financial security, yet many young people continue to struggle with consistent saving habits. In Uganda, student saving behavior remains particularly important because many students rely on limited and irregular income sources, making it necessary to understand what shapes their ability to save effectively. This study examined the determinants of savings behavior among university students at Makerere University School of Statistics and Planning, with specific attention to financial literacy, monthly income, and peer influence. A cross-sectional quantitative design was used, and data were collected from 153 students selected through simple random sampling. A structured questionnaire was used to gather primary data on financial literacy, income patterns, peer influence, and savings behavior. The data were coded and analyzed in Stata 17 using univariate analysis, bivariate analysis, and binary logistic regression to identify the factors associated with saving behaviour. The findings showed that many students had a personal budget, understood interest rates, and engaged in goal-oriented saving, but most saved less than 10% of their income and relied mainly on parents or guardians for support. At the bivariate level, financial literacy indicators, income factors, and peer influence were all significantly associated with savings behaviour. However, multivariate analysis showed that only budget adherence, consistency of monthly income, proportion of income saved, and goal-oriented saving remained significant predictors. Students with consistent monthly income were more likely to exhibit good saving behaviour, while stronger goal-oriented saving was strongly associated with improved saving habits. Peer influence also mattered, especially where friends encouraged saving and where students belonged to savings groups. The study concludes that savings behaviour among university students is shaped less by income size alone and more by practical financial discipline, income consistency, and supportive peer environments. Strengthening financial literacy, encouraging savings groups, and promoting regular income opportunities may improve student saving culture.