Determinants of Saving Behavior Among Filipino University Students: A Psychological and Social Perspective

Abstract

The study investigates the psychological and social determinants of saving behavior among university students. The PLS-SEM examines how financial literacy, parental influence, peer impact, and self-control affect students' saving behavior. The observed significant variance suggests that the model effectively accounts for students' saving behavior.  The study reveals that financial literacy had the greatest impact on savings behavior, demonstrating the importance of financial knowledge and awareness. Parental Influence positively and significantly affects saving behavior, suggesting the relevance of family socialization and practice modeling in teaching the children to save. Because Peer Influence is insignificant, the saving decision is likely family-driven rather than societal. Unexpectedly, self-control negatively affects saving behavior, challenging the conventional assumption and interplay of discipline and action. These findings support Katona’s Theory and Life-Cycle Hypothesis that psychological and social factors affect student’s early financial expectations and goals. Current study adds to youth financial behavior literature, offering evidence-based advice on raising financially responsible children.