Impact two main determinants of saving behavior which

               Impact of Self Control and Social Influence on the Saving
Behavior of University Level Students in Pakistan


 Over some past decades, saving is most common
factor for the economic growth of any country. We can be say that saving can
rise economic growth and development of any country. It can be defined that it
is a part of any person’s income that is not used. Harrod (1939) and Domtar (1946),
said that economic growth speed can be measured by capacity to save because when
there is more rate of saving in any country that leads to high rate of economic
growth and investment. Saving behavior means the activities or methods of any
person that used to minimize their expenditures. So, our aim of study is to
determine those factors that effects on the saving behavior of university
students in Pakistan. According to past research there are two main determinants
of saving behavior which are self-control and financial literacy. These
determinants are our part of study. Furthermore, we select university students
for study because they play an important role for the contribution in
development of any, saving behavior of every student varies from
other due to their financial awareness level. In this research, we have
discussed those aspects and variables which effect on saving behavior of
university student in Pakistan, so readers can gain knowledge about these



1.1. Background


1.2. Problem Statement


 Mostly University students cannot save money because
they receive the loans and spent for nonacademic purposes due to less
information about financial literacy so they face many financial problems.
Another thing that is important that they should have skills and abilities that
can manage these resources helpful to meet with routine activities by this they
take right decisions (Kempson, Collard, & Moore, 2006). Cohran, Aleksa,
& Sanders (2008) noted that risks and future costs can be effect on people
that are irresponsible and less self-control. The students which are less
self-control and incapable they spend according to their preference which leads
to overspending and non-proper management to save for a “rainy day”.
All above factors are important but self-control and financial literacy are
most important to determining the student’s behavior.



1.3. Research question

1. What is the effect of financial
literacy on saving behavior of university students?

2. What is the effect of self-control
on saving behavior of university students?

1.4. Research Objectives

Ø  1.
To determine the relationship between saving behavior of the university
students and financial literacy.

Ø  2.
To determine the relationship between saving behavior of the university
students and self-control.

1.5. Significance of study

The main purpose of this study is
to create financial awareness towards saving among students of Islamabad universities.
To avoid the debt tracks and managing personal saving educators and regulators
can to develop suitable programs and design appropriate financial courses for
them. Profitability and competitiveness of retail banks can be improved by
these practices. Most important thing is that there are very few researches on
this topic so by this research we can inspire students to manage their saving.

1.6. Supporting Theories

2. Literature review

Parents are playing important roles in ensuring their
children to establish saving behavior. They conduct study to determinants of
saving behavior among university students in Malaysia. The findings show that all
factor have positive relationship with saving behavior. The parental
socialization is great impact on saving behavior of students Thung et al.

To investigate the factor influencing on saving behavior
among university students in Sri Lanka. Financial literacy and self-control is
positive impact on saving behavior but the findings show student behavior
towards financial literacy is more than self-control Tharanika & Andrew,

The family involvement plays a major role in students saving
behaviors with other factors financial literacy and peer influence in this
study to examine the effect of social influence and financial literacy on
Malaysian students Jamal et al. (2015).

In this study examine the relationship of saving behavior
and financial problems to financial literacy among college students in
Malaysia. The result of this study show financial literacy is positive
associate with saving behavior it also effects on financial problems because
saving decreases financial problems Sabari & MacDonald, (2010).

In this paper examine saving habits of Hungarian college
students. The individual upbringing, parental and educational influence have an
outstanding impact on subsequent financial perspective Balint & Kokeny,

University students’ saving behavior is influenced by their
parents support of doing saving and parents experience in doing saving. This
study is conducted to find the influence of family background towards saving
behavior of students in Jabodetabek Indonesia Firmansyah, (2014).

To investigate the factors affecting savings habits within millennial
students of Taylor University in Malaysia. The result of this study revealed
that parental socialization is major factor who effect students saving habits
and self-dominance is weakest factor for saving habit Alwi et al. (2015).

At the college age, students have better practices,
budgeting and tracking their spending more regularly. Saving practice is
increase with college age and education which students at the secondary level
have less saving practices and less responsibilities to control and manage
their expenditure Wong, (2013).

The study is investigating the relationship between factors
that influence saving habits among students of the Politeknik Sultan Azlan
Shah. The result of this study shows parental socialization is greatly
influence of student saving habits and self-control is poorly influence on
students Hashim, (2012).

The financial management, parental socialization and peer
influence is positive relationship with saving habits among undergraduate
students of UITM Negeri Sembilan, Kampus Seremban. The result also show saving
habit and self-control has no relationship which means students with
less-control tend to save less Syahrom, (2017),







2.3 Proposed Conceptual Framework/ Research Model


Saving behavior








3.1 Introduction

This chapter will
explains thoroughly about the research design, data collection methods,
sampling design, research instrument, constructs measurement, data processing
and methods of data analysis.

Research Design

This is an
explanatory study on the determinants of saving behavior among students of the
faculty of business and management federal Urdu university Islamabad. Quantitative
method is employed by the researchers as the empirical assessments consist of
numerical measurement and analysis.

3.3 Data Collection Methods

The method of data
collection used is determined by the type of data needed and pre-set research
design. In this research, primary data collection method will be used to obtain
information and opinions directly and specifically from the students of the
faculty of business and management on federal Urdu university Islamabad
determinants of saving behavior. .

3.4 Sampling Design

Sampling design is a
process to select an appropriate amount of units from the population of
interest to provide accurate information about the entire population.

Target Population

The target population
for the research will be all students from the faculty of business and
management on federal Urdu university Islamabad

3.4.2 Sampling Technique

 Random sampling technique will be used in the
research as it ensures good estimates of the population characteristics. The
questionnaires will be distributed to the students of the faculty of business
and management on federal Urdu university Islamabad randomly to the amount
equal to the sample size.

Sampling Size

The sample size of
200 students is considered to be representative

3.5 Research Instrument

 Questionnaire method will be used to collect
data. The instruments that will be used in shape of likert all the variables
constructed in the proposed theoretical framework. Those are 1) Strongly
disagree, (2) = disagree (3) = neutral (4) = agree (5) = strongly agree

3.2. Data Collection

Primary data will be
collected as through questionnaire. The questionnaire will include closed ended
questions for ease of administration.

3.3. Data Analyses

The data analyses for
this study will be conduct through statistical package for social science SPSS
version 20. The descriptive statistics will use mean ‘regression’ and
correlation from the total number of samples representing ‘N’. This statistical
technique will be used to analysis the data and to take average of respondents
and linear regression to check the effect of independent variable on dependent