Abstract
This literature review explores the influence of financial literacy on student saving
behavior. By analyzing five international journals, this study highlights how a higher
level of financial knowledge significantly contributes to responsible saving habits
among university students. The review also discusses moderating factors such as
financial technology, self-control, and social environment. The findings suggest that
financial literacy programs should be promoted to strengthen financial responsibility
among youth.
Introduction
In today’s complex financial world, the ability to manage money wisely is crucial.
University students, in particular, face increasing financial independence and
challenges, yet many lack the knowledge required to make sound financial decisions.
This review aims to examine the existing literature on how financial literacy influences
saving behavior among students.
Literature Review
The Role of Financial Socialization and Self-Control on Saving Habits
This study found that financial socialization and self-control play a critical role in
forming saving habits among young adults, especially university students. Financial
literacy indirectly contributes to saving behavior through these variables.
Financial Literacy and Social Environment on Saving Behavior
The study shows a direct positive effect of financial literacy on saving behavior. The
social environment also plays a key role in supporting students' decisions to save money
regularly.
Savings Behavior and Financial Problems among College Students in Malaysia
Using a Malaysian sample, this study confirms that students with higher financial
knowledge experience fewer financial problems and tend to save more.
Investment in Financial Literacy and Saving Decisions
The paper uses an economic model to demonstrate that investing in financial education
leads to more efficient saving decisions over time.
