UNDERSTANDING SAVING BEHAVIOUR AMONG YOUNG ADULTS: THE MEDIATING ROLE OF FINANCIAL LITERACY
DOI:
https://doi.org/10.35631/IJEPC.1164079Keywords:
Financial Literacy, Parental Socialisation, Peer Influence, Saving Behaviour, Young AdultsAbstract
Saving behaviour by young adults has becoming increasingly important concern, particularly in urban areas where rising living costs and financial pressures pose significant challenges to financial well-being. Current study aims to investigates the relationship between parental socialization, peer influence, self-control to saving behavior among young adults in Klang Valley, Malaysia, and the mediating role by financial literacy. A quantitative survey approach was employed, involving 300 respondents aged 18 to 26 years residing in Klang Valley. Current study utilises the online surveys to collect data, Hayes' PROCESS Macro and the Statistical Package for the Social Sciences (SPSS) used to analyse data. The results showed that parental socialization has significant positive relationship with saving behaviour. However, peer influence, financial literacy and self-control showed no relationship with saving behaviour. The mediation analysis indicates that financial literacy partially mediates the parental socialisation and saving behaviour. In addition, financial literacy completely mediates the relationship between peer influence and saving behavior. However, self-control and saving behaviour not mediated by financial literacy. The results highlight how crucial the financial literacy in promoting responsible saving practices among young adults. The study also emphasizes how social and behavioral elements, alongside financial literacy, interact to influence financial behavior. The results of the research provide knowledge for policymakers, academician and financial institutions in developing effective financial education programmes and interventions aimed at strengthening saving habits and enhancing financial resilience among young adults in highly urbanised areas.
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