Determinants of Savings Behavior among University Students: A Case Study of the University of Nairobi, Kenya
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Abstract
Over the years, numerous researchers have studied the determinants of personal saving behavior among households and employees rather than young adults such as university students. Few studies focus on the financial behavior of university students, but most of these studies were not guided by theories and merely focused on single factors. Therefore, this research aims to determine the determinants of savings behavior among university students. Primary data were collected from 104 randomly sampled university students from various programs of study. Descriptive statistics were used to characterize the students and determine the number of students who save their income. Similarly, the probit regression model has been used to determine the determinants of saving among the students since then. The findings show that the majority of the students (80.76%) save their income. Similarly, the results depicted that financial literacy and peer influence had a positive impact on students' savings, while parental orientation depicted an inverse relationship with students saving. Self-control had no significant relationship with saving behavior. Other determinants of students' saving behaviour included having an account number (positive) and students' age (negative). The study, therefore, recommended that the students attend financial literacy programs, open bank accounts, and participate in peers' work-study activities to increase their savings.