Top

Published in:

2023 | OriginalPaper | Chapter

Predicting Saving Intention and Behavior Among University Students Using Partial Least Square Structural Equation Modelling

Authors : Ng Xin Rhu, Chong Tiang Yian, Noor Raihani Zainol, Tanvir Abi, Abdullah Al Mamun, Anas A. Salameh

Published in: Innovation of Businesses, and Digitalization during Covid-19 Pandemic

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

In Malaysia, many university students have different views on saving management based on different factors. Therefore, this study aims to examine the intention and behaviours towards saving among Malaysian students. A cross-sectional design was adopted to collect quantitative data from 307 Malaysian students and universities in Klang Valley. Furthermore, the theory of planned behaviour (TPB) was applied, followed by an extension of TBP by embedding the constructs involved in the behaviour of saving. The results indicated that financial attitude, financial socialisation, financial capability, and self-control have a positive and significant effect on saving intention and behaviour among university students in Malaysia. However, financial education did not have a significant impact on saving intention and behaviour. Notably, the results offer a guideline to policymakers and awareness campaign to increase saving behaviour and financial management. The relevant agencies should focus on improving financial attitude, financial socialization, financial capability, financial education, and self-control towards saving intention and behaviour for their future planning in education and life.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter The Adoption of Augmented Reality Technology in e-learning: Case of a Mobile Application During Covied-19

next chapter The Importance and Evaluation of Resilience Leadership Capability in Managing University: An Understanding

Achtziger, A., Hubert, M., Kenning, P., Raab, G., Reisch, L.: Debt out of control: the links between self-control, compulsive buying, and real debts. J. Econ. Psychol. 49, 141–149 (2015). https://doi.org/10.1016/j.joep.2015.04.003CrossRef

Ajzen, I.: The theory of planned behavior. Organ. Behav. Hum. Decis. Process. 50(2), 179–211 (1991)CrossRef

Ajzen, I.: The theory of planned behaviour: reactions and reflections. Psychol. Health 26(9), 1113–1127 (2011)CrossRef

Amari, M., Salhi, B., Jarboui, A.: Evaluating the effects of sociodemographic characteristics and financial education on saving behavior. Int. J. Sociol. Soc. Policy 40(11/12), 1423–1438 (2020)CrossRef

Bamforth, J., Jebarajakirthy, C., Geursen, G.: Understanding undergraduates’ money management behaviour: a study beyond financial literacy. Int. J. Bank Mark. 36(7), 1285–1310 (2018)CrossRef

Bapat, D.M.: Segmenting young adults based on financial management behavior in India. Int. J. Bank Mark. 38(2), 548–560 (2019)CrossRef

Damian, L.E., Negru-Subtirica, O., Domocus, I.M., Friedlmeier, M.: Healthy financial behaviors and financial satisfaction in emerging adulthood: a parental socialization perspective. Emerg. Adulthood 8(6), 548–554 (2020)CrossRef

Danes, S.M., Yang, Y.: Assessment of the use of theories within the journal of financial counseling and planning and the contribution of the family financial socialization conceptual model. J. Finan. Counsel. Plan. 25(1) (2014)

Dhandra, T.K.: Does self-esteem matter? A framework depicting role of self-esteem between dispositional mindfulness and impulsive buying. J. Retail. Consum. Serv. 55, 102135 (2020)CrossRef

Dontsov, A., Zinchenko, Y., Zotova, O.: Notions of Security as a Component of Students Attitudes towards Money. Procedia – Soc. Behav. Sci. 98–103 (2013)

Duflo, E., Saez, E.: The role of information and social interactions in retirement plan decisions: evidence from a randomized experiment. Q. J. Econ. 118(3), 815–842 (2003)MATHCrossRef

Fiksenbaum, L., Marjanovic, Z., Greenglass, E.: Financial threat and individuals’ willingness to change financial behavior. Rev. Behav. Finan. 9(2), 128–147 (2017)CrossRef

Furnham, A.: Why do people save? attitudes to, and habits of saving money in Britain. J. Appl. Soc. Psychol. 15(5), 354–373 (1985)CrossRef

Gathergood, J., Weber, J.: Self-control, financial literacy & the co-holding puzzle. J. Econ. Behav. Organ. 107, 455–469 (2014). https://doi.org/10.1016/j.jebo.2014.04.018CrossRef

Glanz, K., Rimer, B.K., Viswanath, K. (eds.): Health Behavior: Theory, Research, and Practice. Wiley, Hoboken (2015)

Gudmunson, C.G., Danes, S.M.: Family financial socialization: theory and critical review. J. Family Econ. Issues 32(4), 644–667 (2011). https://doi.org/10.1007/s10834-011-9275-yCrossRef

Hair, J.F., Jr., Matthews, L.M., Matthews, R.L., Sarstedt, M.: PLS-SEM or CB-SEM: updated guidelines on which method to use. Int. J. Multivariate Data Anal. 1(2), 107–123 (2017)CrossRef

Hair, J.F., Risher, J.J., Sarstedt, M., Ringle, C.M.: When to use and how to report the results of PLS-SEM. Eur. Bus. Rev. 31(1), 2–24 (2019)CrossRef

Henseler, J.: Bridging design and behavioral research with variance-based structural equation modeling. J. Advert. 46(1), 178–192 (2017)CrossRef

Howlett, E., Kees, J., Kemp, E.: The role of self-regulation, future orientation, and financial knowledge in long-term financial decisions. J. Consum. Affairs 42(2), 223–242 (2008). https://doi.org/10.1111/j.1745-6606.2008.00106.xCrossRef

Jackson, D.: Gauging the development of innovative capabilities in accounting and Finance students: can they drive the national innovation agenda? Account. Finan. 60(3), 2689–2715 (2020)CrossRef

Jamal, A.A.A., Ramlan, W.K., Mohidin, R., Osman, Z.: Determinants of savings behavior among university students in Sabah, Malaysia. Int. J. Account. Finan. Bus. 1(1), 24–37 (2016)

Kapounek, S., Korab, P., Deltuvaite, V.: (Ir)rational households’ saving behavior? an empirical investigation. Procedia Econ. Finan. 625–633(39), 625–633 (2016)CrossRef

Kautonen, T., Van Gelderen, M., Fink, M.: Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrep. Theory Pract. 39(3), 655–674 (2015)CrossRef

Liang, J., Tang, M.L., Zhao, X.: Testing high-dimensional normality based on classical skewness and Kurtosis with a possible small sample size. Commun. Stat.-Theory Methods 48(23), 5719–5732 (2019)MathSciNetMATHCrossRef

Lusardi, A.: Finnacial literacy and the need for financial education: evidence and implication. Swiss J. Econ. Stat. 155(1), 1–8 (2019)CrossRef

Lusardi, A., Mitchelli, O.S.: How ordinary consumers make complex economic decisions: financial literacy and retirement readiness. Q. J. Financ. 7(03), 1750008 (2017)CrossRef

Magendans, J., Gutteling, J., Zebel, S.: Psychological determinants of financial buffer saving: the influence of financial risk tolerance and regulatory focus. J. Risk Res. 20(8), 1076–1093 (2017). https://doi.org/10.1080/13669877.2016.1147491CrossRef

McCormick, M.H.: The effectiveness of youth financial education: a review of the literature. J. Finan. Counsel. Plan. 20(1) (2009). https://ssrn.com/abstract=2225339

Morin, A.J., Meyer, J.P., Creusier, J., Biétry, F.: Multiple-group analysis of similarity in latent profile solutions. Organ. Res. Methods 19(2), 231–254 (2016)CrossRef

Nga, J.K., Yong, L.H., Sellappan, R.D.: A study of financial awareness among youths. Young Consum. 11(4), 277–290 (2010)CrossRef

Paluri, R.A., Mehra, S.: Financial attitude based segmentation of women in India: an exploratory study. Int. J. Bank Mark. 34(5), 670–689 (2016)CrossRef

Peprah, J.A., Afoakwah, C., Koomson, I.: Savings, entrepreneurial trait and self-employment: evidence from selected Ghanaian Universities. J. Glob. Entrep. Res. 5, 1 (2015)CrossRef

Podsakoff, P.M., MacKenzie, S.B.: An examination of the psychometric properties and nomological validity of some revised and reduced substitutes for leadership scales. J. Appl. Psychol. 79, 702–713 (1994)CrossRef

Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., Podsakoff, N.P.: Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 88, 879–903 (2003)CrossRef

Potrich, A.C.G., Vieira, K.M., Mendes-Da-Silva, W.: Development of a financial literacy model for university students. Manag. Res. Rev. (2016)

Puspasari, E., Yanto, H., Prihandono, D.: The saving behavior of state vocational high school students in tegal regency. J. Econ. Educ. 7(2), 132–142 (2018). http://journal.unnes.ac.id/sju/index.php/jeec/article/view/28046

Ringle, C.M., Sarstedt, M.: Gain more insight from your PLS-SEM results. Ind. Manag. Data Syst. 116(9), 1865–1886 (2016)CrossRef

Sabri, M.F., Cook, C.C., Gudmunson, C.G.: Financial well-being of Malaysian college students. Asian Educ. Dev. Stud. 1(2), 153–170 (2012)CrossRef

Sabri, M.F., Yusof, R., Rahim, H.A., Jusoh, Z.M.: The role of perceived behavioural control as mediator on financial incentives towards saving in a voluntary retirement fund. Adv. Bus. Res. Int. J. 5(1), 144–156 (2019)CrossRef

Sachitra, V., Wijesinghe, D., Gunasena, W.: Exploring undergraduates’ money-management life: insight from an emerging economy. Young Consum. 20(3), 167–189 (2019)CrossRef

Salikin, N., Ab Wahab, N., Zakaria, N., Masruki, R., Nordin, S.N.: Students’ saving attitude: does parents’ backgroundmatter? Int. J. Trade Econ. Financ. 3(6), 479 (2012)

Satsios, N., Hadjidakis, S.: Applying the theory of planned behaviour (tpb) in saving behaviour of Pomak households. Int. J. Finan. Res. 9(2), 122–133 (2018)CrossRef

Saurabh, K., Nandan, T.: Role of financial risk attitude and financial behavior as mediators in financial satisfaction: empirical evidence from India. South Asian J. Bus. Stud. 7(2), 207–224 (2018)CrossRef

Scarpellini, S., Marín-Vinuesa, L.M., Portillo-Tarragona, P., Moneva, J.M.: Defining and measuring different dimensions of financial resources for business eco-innovation and the influence of the firms’ capabilities. J. Clean. Prod. 204, 258–269 (2018)CrossRef

Sereetrakul, W., Wongveeravuti, S., Likitapiwat, T.: Gender differences in saving and spending behaviours of Thai students. Res. Educ. 90(1), 68–81 (2013)CrossRef

Sharif, S.P., Naghavi, N.: Family financial socialization, financial information seeking behavior and financial literacy among youth. Asia-Pacific J. Bus. Adm. 12(2), 163–181 (2020)CrossRef

Shenhav, A.: The perils of losing control: why self-control is not just another value-based decision. Psychol. Inq. 28(2–3), 148–152 (2017)CrossRef

Sirsch, U., Zupančič, M., Poredoš, M., Levec, K., Friedlmeier, M.: Does parental financial socialization for emerging adults matter? The case of Austrian and Slovene first-year university students. Emerg. Adulthood 8(6), 509–520 (2020)CrossRef

Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., Tinghög, G.: Does self-control predict financial behavior and financial well-being? J. Behav. Exp. Finan. 14, 30–38 (2017). https://doi.org/10.1016/j.jbef.2017.04.002CrossRef

Tang, C.F.: How stable is the savings-led growth hypothesis in Malaysia? The bootstrap simulation and recursive causality tests. Margin: J. Appl. Econ. Res. 9(1), 1–17 (2015). https://doi.org/10.1177/0973801014557393

Tenenbaum, G., Eklund, R.C.: Handbook of Sport Psychology, 4th edn. John Wiley, Hoboken (2020)CrossRef

Van Campenhout, G.: Revaluing the role of parents as financial socialization agents in youth financial literacy programs. J. Consum. Aff. 49(1), 186–222 (2015)CrossRef

Vosylis, R., Erentaitė, R.: Linking family financial socialization with its proximal and distal outcomes: which socialization dimensions matter most for emerging adults’ financial identity, financial behaviors, and financial anxiety? Emerg. Adulthood 8(6), 464–475 (2020)CrossRef

Widjajaa, I., Arifin, A.Z., Setini, M.: The effects of financial literacy and subjective norms on saving behavior. Manag. Sci. Lett. 10(15), 3635–3642 (2020). https://doi.org/10.5267/j.msl.2020.6.030CrossRef

Widyastuti, U., Suhud, U., Sumiati, A.: The impact of financial literacy on student teachers’ saving intention and saving behaviour. Mediterranean J. Soc. Sci. 2039–2117 (2016)

Williams, A.J., Oumlil, B.: College student financial capability: a framework for public policy, research and managerial action for financial exclusion prevention. Int. J. Bank Mark. 33(5), 637–653 (2015)CrossRef

Xiao, J.J., Tang, C., Serido, J., Shim, S.: Antecedents and consequences of risky credit behavior among college students: application and extension of the theory of planned behavior. J. Public Pol. Mark. 30(2), 239–245 (2011). https://journals.sagepub.com/doi/abs/10.1509/jppm.30.2.239

Xiao, J.J., Porto, N.: Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. Int. J. Bank Mark. 35(5), 805–817 (2017). https://doi.org/10.1108/IJBM-01-2016-0009CrossRef

Yang, R., Yue, C., Li, J., Zhu, J., Chen, H., Wei, J.: The Influence of Information Intervention cognition on college students’ energy-saving behavior intentions. Int. J. Environ. Res. Public Health 17(5), 1659 (2020)CrossRef

Yong, C.C., Yew, S.Y., Wee, C.K.: Financial knowledge, attitude and behavior of young working adults in Malaysia. Inst. Econ. 10(4) (2018)

Yusof, R., Sabri, M.F., Rahim, H.A., Jusoh, Z.M.: Examining the behavioural intention to save in a voluntary retirement fund in Malaysia. Malaysian J. Consum. Family Econ. 78–102 (2018)

Title: Predicting Saving Intention and Behavior Among University Students Using Partial Least Square Structural Equation Modelling
Authors: Ng Xin Rhu
Chong Tiang Yian
Noor Raihani Zainol
Tanvir Abi
Abdullah Al Mamun
Anas A. Salameh
Publisher: Springer International Publishing
Book: Innovation of Businesses, and Digitalization during Covid-19 Pandemic
Print ISBN: 978-3-031-08089-0

Electronic ISBN: 978-3-031-08090-6

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-031-08090-6_60

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"

Premium Partners