Savings Behavior Research Articles

Understanding precautionary savings behaviour: Insights from Czechia

Understanding precautionary savings behaviour: Insights from Czechia

Mediating effect of self-control on financial literacy and savings behaviour of rural women entrepreneurs

Background: Savings behaviour is crucial for any economic and investment activity. The ability of rural enterprises to save is difficult because of their ignorance of the benefits of savings, low-income levels and inability to commit personal savings, which falls to certain factors that include financial literacy (financial knowledge, financial attitude) and self-control.Aim: The article aims to examine the mediating effect of self-control on financial literacy (financial knowledge, financial attitude) and savings behaviour of rural women entrepreneurs in Mokwa Local Government, Niger State, Nigeria.Setting: The population comprised 340 rural women trained by the Department of Commerce on financial literacy applications in the 11 wards of Mokwa Local Government. A total of 175 respondents were identified using the Krejcie and Morgan sample size table.Methods: Primary quantitative data were collected using structured questionnaires and analysed using partial least square (PLS) path modelling.Results: The empirical results revealed that financial knowledge and financial attitude exerted a positive effect on the savings behaviour of rural women entrepreneurs.Conclusion: The conclusion drawn from the study is that the financial literacy of rural women entrepreneurs is empirically related to how they save.Contribution: Based on the research findings, the study recommends that government agencies supervising and coordinating the activities of entrepreneurs like SMEDAN and also financial institutions like Microfinance Banks should facilitate flexible, understandable and acceptable programmes that will enlighten rural entrepreneurs on the importance of savings for investment and the nation at large.

Who’s Active Actor? The Analysis of Moderating Impact of Opportunity and Cost on Personal Energy Saving Behavior and Public Policy Participation

Who’s Active Actor? The Analysis of Moderating Impact of Opportunity and Cost on Personal Energy Saving Behavior and Public Policy Participation

Development and validation of the motivation for electricity saving behaviour scale (MESBS) among residents living in energy-efficient buildings in Sweden

Even though energy-efficient technologies are well developed, the behaviour of building occupants plays an important role in the search for the optimum level of energy efficiency. In academic literature, however, very few studies have used psychological theories to understand individuals’ drivers of energy use behaviour when interacting with energy-efficient technologies. Specifically, there are no studies solely focused on individuals' motivations for electricity saving behaviour. This paper is based on an empirical study carried out in energy-efficient residential buildings to develop and test a new scale by applying self-determination theory (SDT). A postal survey about the Motivation for Electricity Saving Behaviour Scale (MESBS), including self-reported electricity use, was sent out to 1,084 residents living in newly built energy-efficient multifamily dwellings and eco-villages in Southern Sweden. The answers obtained from 235 participants were analysed for the reliability and validity of MESBS. The findings indicated that i) MESBS items have good internal consistency and are in line with expectations based on SDT, and ii) the autonomous motivation component of MESBS is strongly associated with electricity saving behaviour (i.e. turning off lights when not needed) in energy-efficient buildings. Our results emphasise the importance of considering individuals’ motivations for undertaking electricity saving behaviour in energy-efficient buildings. The study also provides useful information for future studies of energy-efficient buildings as well as designing new technologies and interventions to reach the optimum level of energy-efficiency.

Study on the Impact of China’s Pension Insurance System on the Savings Rate of Urban Residents Based on the Preventive Saving Perspective

In the context of population aging, the study of the impact of the pension insurance system on the savings behavior of urban residents can help reduce preventive savings, increase current consumption, and promote the healthy development of the economy. This study constructs a two-period OLG model of the pension insurance system based on the preventive saving perspective using urban panel data of 31 provinces from 2002 to 2021 and conducts empirical analysis through the systematic generalized method of moments. The results show that the pension insurance participation rate was positively correlated with the savings rate, while the pension replacement rate was negatively correlated with the savings rate, and this effect varied significantly across income levels and different levels of aging. Increased participation in high-income areas promoted savings, while increased pension replacement rates in low-income areas reduced savings. The positive correlation between participation rates and savings rates was more pronounced in regions with higher levels of aging, while the opposite was true in regions with lower levels of aging. In addition, the negative correlation between pension replacement ratios and savings rates was particularly pronounced in high-aging regions.

Analyzing Savings Behavior Among University Students: A Case Study of Bank's Financial Education Initiatives

This study investigates the impact of Maybank’s Financial Education Initiatives and financial goal-setting on the savings behavior of university students. Utilizing both primary and secondary data, the study aims to determine how financial education and the establishment of measurable financial goals influence students' savings habits. Primary data was collected through an online survey distributed to 200 university students using a Five-Point Likert Scale to measure responses regarding their participation in financial education programs, financial goals, and savings behavior. Secondary data was sourced from relevant academic journals focusing on accounting and finance research in the Asia Pacific region. The results reveal that both financial education and goal-setting significantly influence savings behavior, with financial goals exhibiting a stronger effect. Regression analysis shows that financial goals (β = 0.386) have a higher impact on savings than Maybank’s Financial Education Initiatives (β = 0.270). The study concludes that while financial literacy is crucial, goal-setting plays a more pivotal role in promoting consistent saving behavior. The findings imply that financial literacy programs should integrate goal-setting strategies to maximize their effectiveness in fostering long-term financial responsibility among students

Savings and Sustainable Economic Growth Nexus: A South African Perspective

The savings behavior of individuals has been a topic of both macroeconomic and policy importance throughout history. Theoretical and empirical research shows that savings result from several demographic and economic factors working together to produce long-term, sustainable economic growth. This study therefore examined the nexus between domestic savings and sustainable economic growth in a South African perspective between 1990–2023, emphasizing the critical role that savings play in fostering long-term economic stability and environmental resilience. The ARDL framework was used to analyze data from the World Bank and the South African Reserve Bank. The results of the study demonstrate that corporate savings have a major effect on sustainable economic growth, especially over the long term. When corporate savings rise by 1%, the economy expands by 3.12%, which highlights the significant multiplier effect of investment. The extent of this impact depends on factors such as the efficiency of capital allocation, technological capacity, financial market development, government policies, and macroeconomic stability. These factors collectively determine how effectively corporate savings are transformed into productive investments that drive sustainable economic growth. Conversely, savings made by the government and the public, especially in the long run, have no appreciable impact on sustainable economic growth. Given that domestic savings mobilization is the most suitable channel for financing capital accumulation to support economic growth and development, the study suggests reviewing current policies to encourage domestic savings mobilization. This paper contributes to the broader discourse on sustainable economic policies in emerging markets, offering actionable insights for policymakers, financial institutions, and stakeholders promoting a more sustainable economic future for South Africa.

Moderation of Life Style on the Influence of Financial Literacy and Self-Control on the Saving Behavior of Millennial Employees in Denpasar City

This study aims to analyze the influence of financial literacy and self-control on the saving behavior of millennial employees, as well as the moderating role of lifestyle in the relationship. Financial literacy, which includes an individual’s understanding of basic financial concepts and money management, is hypothesized to play an important role in increasing saving behavior. Self-control, an individual’s ability to resist consumer impulses and make wise financial decisions, is also considered a key factor influencing the tendency to save. However, excessive consumption behavior as part of the millennial lifestyle can potentially hinder savings efforts even though they have adequate financial literacy and self-control. In this study, lifestyle is modeled as a moderating variable that can weaken or strengthen the influence of financial literacy and self-control on saving behavior. Data collection was conducted through a survey of millennial employees from various job sectors. Data analysis used the moderated regression method to test the interaction between financial literacy, self-control, and lifestyle in influencing saving behavior. The results showed that financial literacy and self-control had a significant positive effect on saving behavior. However, lifestyle acts as a negative moderator, where a consumptive lifestyle weakens the relationship between financial literacy and self-control with saving behavior. This finding provides practical implications for individuals and companies, especially in raising awareness of the importance of lifestyle control and financial literacy to encourage better saving behavior among millennial employees.

A Conceptual Framework of the Retirement Savings Behavior among Civil Servants in Malaysia

The feasibility of maintaining a comfortable standard of living for civil servants in Malaysia is frequently questioned due to their reliance on pensions as the primary source of retirement funds, which may not suffice to cover the rising retirement costs. To address this issue, civil servants could consider accumulating savings during their working years instead of solely depending on pension disbursements. This academic discourse examines the effect of the independent variables of attitudes towards retirement savings (financial risk tolerance, past behaviours, and subjective norms as psychological elements) and financial considerations (tax incentives) on retirement savings behaviour. Additionally, the research also explores the moderating role of perceived government policy and perceived behavioural control with its antecedents, namely financial literacy, self-control between the independent variables, and retirement savings behaviour among civil servants in Malaysia. Drawing from the extended interactive theory of planned behaviour, amalgamated theories comprising the interactive theory of planned behaviour, rationale choice theory, and the behavioural economic model and existing literature, this article introduces a conceptual framework detailing the determinants influencing the RSB of civil servants in Malaysia. The proposed framework has the potential to benefit various stakeholders, particularly civil servants seeking to prepare adequately for their retirement years.

Wealth, Consumption, and Savings Patterns in Retirement: A Challenge to the Life-Cycle Hypothesis

This paper investigates the wealth, consumption, and savings behavior of elderly individuals through the lens of the life-cycle hypothesis. Using data from Survey of Health, Ageing and Retirement, we employ Student's t-test to test differences between pre-retirement and retirement age groups. The findings shed light on the extent to which elderly individuals adhere to the life-cycle hypothesis and provide insights into the economic behavior of this demographic group. Our findings align with previous studies indicating that the life-cycle theory inadequately captures the dynamics of wealth, consumption, and savings during retirement age. According to our results, there is a consistent decrease in all examined variables with advancing age, with the lowest yet non-zero values observed among the oldest individuals.

The effect of financial skills and strategies toward saving behavior among self-employed workers in retirement planning

This paper aimed to investigate essential factors of financial skills and financial strategies that influence retirement savings behavior among self-employed workers. Many retirement savings schemes are being introduced by regulatory bodies or financial institutions, especially for self-employed workers on a voluntary basis, but many people's efforts to save for retirement are stalled. However, the participation of self-employed workers in those schemes is still low as people have financial instability or lack of knowledge in matters. The quantitative approach is applied by distributing a systematic random sampling of 400 prospective respondents. The outcome was analyzed using Structural Equation Modelling (SEM) indicates that savings behavior financial skill, financial strategies, and demographics positively moderated relationship. This study adds to the existing knowledge on financial skills as well as financial strategies towards saving objectives for self-employed, with practical implications for promoting positive saving habits and improving financial well-being across all age groups. Policymakers might use the data to create targeted programs that specifically target self-employed workers and promote responsible saving and financial security across generations. The authorities should construct a comprehensive fixed retirement scheme for self-employed workers based on these characteristics so that self-employed workers have secure and stable financial security after retirement.

Retirement Saving Behaviour: the moderating effect of socio-demographics

This study was conducted to examine the relationship between future time perspective (FTP), financial risk tolerance (FRT), knowledge of financial planning for retirement (KFPR), and retirement saving behaviour (RSB), as well as the moderating effect of demographics, on the relationship between these variables. Data was collected primarily through non-probability judgmental sampling. 312 United Arab Emirates (UAE) individuals working at universities participated in the study. Data analysis was carried out using Smart-PLS and SPSS software packages. It was found that FTP positively influenced RSB, while FRT was insignificant. Moreover, age, gender, nationality, education level, and monthly income played moderating roles in the model. Policymakers should implement policies to include personal finance and financial planning in school and university curricula to improve people's awareness of the importance of retirement planning. Education resources can be wisely channeled to address insufficient retirement planning by regulators and policymakers.

Do creditors punish weak banks? Evidence from Indian urban cooperative banks’ failure

This study empirically assesses two critical hypotheses related to market discipline: (i) Do depositors penalize underperforming banks by withdrawing their deposits? and (ii) Do well-informed peer banks reduce lending to weak banks? Based on the annual standalone balance sheet data of urban cooperative banks in India from 1990 to 2020, our findings suggest that: (i) the behaviour of savings and current depositors is not significantly affected by the bank risk; (ii) the risk-taking behaviour of the banks significantly influences term deposits; and (iii) other informed peer banks and financial institutions do respond to the riskiness of peer banks. Additionally, our research revealed a positive association between the size of assets and the deposit growth rate, indicating that depositors are responsive to the influence of the “too-big-to-fail” phenomenon. Moreover, depositors are sensitive to banks’ non-interest expenditures. Banks with higher non-interest expenditures pay a higher interest rate to retain depositors, thus suggesting the presence of weak market discipline.

Retirement Planning Decisions: Analyzing Behavioral Influences on Pension Scheme Selection in Malaysian Statutory Bodies

Since gaining independence in 1957, Malaysia has classified employees in various public services as civil servants. Statutory bodies and local authorities were later established to provide specific public services, and their employees were placed under the Employees Provident Fund (EPF) contribution scheme instead of the government pension scheme due to the lack of constitutional amendments. Following the Harun Salary Commission’s recommendations in 1975, these employees were given the choice between the pension scheme and the EPF scheme, with most opting for the pension scheme. This preference has placed significant financial strain on the government's pension resources. To alleviate this burden, current efforts aim to encourage government servants to choose the EPF scheme and consider placing future recruits under this scheme. This study aims to identify the factors influencing statutory bodies and local authority employees to opt for the government pension scheme despite the availability of the EPF scheme. Utilizing the Life-Cycle Theory to understand general savings behavior and the Theory of Planned Behavior to examine decision-making processes, a quantitative approach was employed. Data were collected via a questionnaire survey with 176 respondents from statutory bodies and local authorities in Kota Kinabalu. The PLS-SEM model was used to analyze the data, testing validity and reliability against Common Method Bias. The results indicated that Subjective Norms and Perceived Behavioral Control positively influenced the choice of retirement scheme, while Attitude did not. These findings highlight the role of social influences and perceived control in retirement decision-making.

The distribution of savings behaviours and macro dynamics

The distribution of savings behaviours and macro dynamics

The Relationship Between Self-Control Factors and Household Saving Behavior

We examined the effect of self-control factors on saving behavior based on the behavioral life cycle hypothesis, using the 2016 and 2019 Survey of Consumer Finances datasets. A model which included self-control factors (behavioral life cycle variables) had a more significant effect on saving behavior than a model that included only normative life cycle variables. Among self-control factors, having at least one saving rule was positively associated with saving behavior but saving goals were not significantly associated with saving behavior. Having a foreseeable major expense was negatively associated with saving behavior. The findings of this study can assist financial planners, counselors, and educators in developing and implementing strategies related to self-control factors to enhance saving behavior.

Delaying retirement, income distribution and economic growth

In order to investigate whether postponing retirement age contributes to fostering shared prosperity, we develop a dynamic general equilibrium model incorporating delayed retirement dynamics alongside survival probabilities and heterogeneous human capital distribution across generations. This framework provides a comprehensive assessment regarding how postponing retirement age policies affect both income inequality and economic growth dimensions. Theoretical analysis reveals disparities between low- and high-income group investments in their offspring's education as well as savings behavior. Specifically observed are heightened educational investments by lower income households compared to their affluent counterparts leading to relatively accelerated growth rates for lower income family offsprings' human capital; consequently narrowing intergenerational wealth gaps thus mitigating overall income inequalities. Furthermore,the influence exerted by postponed retirements upon economic expansion hinges largely upon its relative impacts on household educational investments vis-a-vis parental human capital accumulation.Finally, numerical simulations demonstrate that within plausible parameter ranges, pushing back retirements could indeed stimulate economic advancement.

Pengaruh Financial Knowledge, Financial Attitude dan Self Control terhadap Perilaku Menabung Siswa Kelas XI SMAN 1 Wringinanom

Saving behavior is an important aspect in individual financial management. This study aims to investigate how financial knowledge, attitudes towards finances, and self-control influence saving behavior in class XI students at SMAN 1 Wringinanom. This type of research is quantitative. The population studied was all class XI students of SMAN 1 Wringinanom, totaling 400 students. A sample of 80 students was selected using the Slovin formula method and purposive sampling. Data was collected through the use of questionnaires, and data analysis was carried out using multiple linear regression with the help of the SPSS version 27 application for Windows. The results of the research show that the financial knowledge variable has a positive and significant influence on saving behavior, financial attitude has a positive and significant influence on saving behavior, and self-control has a positive and significant influence on saving behavior as well as the financial knowledge, financial attitude and self-control variables. simultaneously have an influence on saving behavior.

A STUDY ON SAVINGS AND INVESTMENT BEHAVIOUR OF YOUTHS OF NAGAON TOWN, ASSAM, INDIA

A STUDY ON SAVINGS AND INVESTMENT BEHAVIOUR OF YOUTHS OF NAGAON TOWN, ASSAM, INDIA

The impact of social globalization on domestic savings: a long-run macroeconomic analysis of advanced ageing economies in the Asia-Pacific Region

ABSTRACT The economics literature has extensively investigated the influence of demography and macroeconomic variables on domestic savings. However, another crucial aspect that needs to be considered in the literature is social globalization concerning conspicuous consumption, which may disproportionately impact savings behaviour in different countries. This paper aims to ascertain how social globalization affects domestic savings at the macroeconomic level in the long run, specifically focusing on countries that have reached advanced stages of ageing in the Asia-Pacific region. Cointegration analysis via the augmented autoregressive distributed lag (A-ARDL) bounds test is used in this paper. The main results show that social globalization and domestic savings are cointegrated in the long run for New Zealand, Japan, South Korea, and Hong Kong. Long-run relationship estimates yield that social globalization intensification leads to a decline in savings, supporting Veblen’s conspicuous consumption theory. Specifically, more Western-oriented countries experience a much more substantial impact of social globalization on savings. To address conspicuous consumption, policymakers should embrace a holistic strategy that encourages savings and financial prudence while discouraging excessive and status-oriented expenditure.