Factors Affecting the Savings Behavior: The Case of Students of Banking University Ho Chi Minh City

Abstract

This study analyzes the factors that influence the Savings behavior of students of the Banking University Ho Chi Minh City (BUH). Using the primary data from the 5-level Likert questionnaire survey for 200 BUH students, the study performed exploratory factor analysis and implemented multivariate regression analysis, using SPSS 20.0. The results of regression analysis showed three key factors influencing the Savings behavior of BUH students, including (1) Financial literacy, 2) Parental socialization, (3) Self-control. On that basis, the study recommends as follows: 1) that parents should practice thrift and educate students to save from an early age; (2) students need to increase their financial literacy to be able to make financial decisions in general, and save money in particular, thereby helping students to have backup sources for emergency situations, which can be done their goals in the short and long term; (3) students need to improve their self-control in spending, whereby spending must also plan through clearly defining current and future needs and wants to spend properly to ensure the student's quality of life.