Savings and investment practices among makerere university students, a case study of School of Statistics and Planning

Abstract

This study delved into the savings and investment behavior of Makerere University students to ascertain the factors influencing their financial management. A cross-sectional survey of 306 students revealed a complex interplay of socio-economic factors and financial literacy impacting saving and investment practices Data analysis involved descriptive, bivariate, and multivariate analyses to explore relationships and identify key predictors of saving and investment practices. This aimed at offering insights for targeted financial education programs and interventions to improve students' financial literacy and long-term financial stability. This study investigated savings and investment practices among Makerere University students, finding significant variations in financial behavior. While 52.61% of respondents reported having savings accounts, only 47.71% saved monthly. The most common monthly income bracket was 200,000-500,000 UGX (28.43%), yet over half (53.27%) felt they had enough to save and invest. Factors like rental residence (27.12%) negatively correlated with financial preparedness, while financial investments (55.23%) paradoxically linked with feeling less financially prepared. These findings underscore the need for tailored financial literacy programs, affordable housing solutions, and accessible investment platforms to enhance students' financial well-being. Logistic regression analysis revealed significant associations between specific factors and students' perception of having enough money to save and invest. Students residing in rental accommodations (OR = 0.43, p<0.01) were less likely to perceive sufficient funds compared to those living at home. While owning a savings account (OR = 1.49, p=0.083) and attending financial literacy courses (OR = 1.59, p=0.043) demonstrated positive associations, engaging in financial investments (OR = 0.62, p=0.038) paradoxically correlated with a lower perception of financial adequacy. These findings underscore the need for tailored interventions addressing housing affordability, financial literacy, and investment education for Makerere University students. In conclusion, these findings underscored the need for tailored interventions addressing housing affordability, financial literacy, and accessible investment platforms for students.