Impact of Social factors, Self-control, and Financial Education on Financial Literacy and Financial Saving Behaviour among University Students in Saudi Arabia

Abstract

The primary research objective aimed to empirically assess the influence of peer influence, self-control, financial education, and parental influence on the financial saving behaviour mediated through the financial literacy of university students in Saudi Arabia. A sample of 260 students participated in the study, selected using purposive sampling, and data were collected through a self-administered questionnaire. The study employed a quantitative research approach with a cross-sectional research design. The empirical regression results revealed positive and statistically significant impacts of parental and peer influences, financial education, and self-control on financial literacy. Mediation analyses further indicated a significant mediating effect of financial literacy in the relationship between peer influence, self-control, parental influence, financial education, and financial saving behaviour. Drawing from the aforementioned study, the research contributes insights endorsing financial education initiatives and collaborative endeavours among stakeholders to cultivate a holistic environment conducive to financial literacy. The study contributes theoretically by incorporating financial education and self-control into established frameworks and practically by advocating curriculum reforms within Saudi Arabian universities. Limitations encompass the study's singular country focus and the absence of moderating variables, prompting a call for future research to delve into cultural variations, introduce moderators, and adopt mixed-method approaches for a more comprehensive understanding.