Major Factors That Influence Student Savings

        

FAMILY BACKGROUND

Family is one of the most important role in student’s life where the parents are teaching them to handle their savings when they are already start their life campus. This is meant by their children are responsible to manage the financial since they are not living with the family when they start to further their study. For example, a long distance between the students and their family is one of the factors or limitations for the parents to control their money. Thus, the students should be alert and knows well about their savings rather than spend more on the things that is not beneficial for them.

PEER INFLUENCE

Peer influence is also can be one of the major factor that influence the saving behavior among Ungku Omar’s students. In this case, it can be concluded that most of the student are influenced by their friend’s lifestyle and does not think too much about the savings as they thought that they still young and free to do anything besides than got the financial support from their family.


Based on common interest and value, as has been shown by studies demon-staring the role of peer influence in substance use (Donohew et al. 1999; Oetting & Beauvais, 1987). Student will tend to compare their saving consumption level with their reference group and lead them to change the attitude.According to Cohran et al. 2008, impulsive and present-oriented individuals with little self-control,student is more likely to spend according to their preference and eventually lead to overspending and inability to save for a “rainy day.




SELF CONTROL

Does the self-control influence of savings behavior among the student’s life and current financial needs of the school and in university institution is very different. Financial needs when studying in higher education institutions is much higher than needed in schools. If students are good at managing money, then they will not face financial problems in the education and learning process will go well Siti Alida et.al 2007. According to Cohran et al. 2008, impulsive and present-oriented individuals with little self-control, student is more likely to spend according to their preference and eventually lead to overspending and inability to save for a “rainy day”.

LACK OF FINANCIAL KNOWLEDGE

In recent year, Sabri and MacDonald (2008) had found that, due to the lack of financial knowledge/literacy, university students in Malaysia are not likely to save upon they received their student loans and spent aggressively for non-academic purpose. As a result, many of them are having financial problems. Meanwhile, skills and ability is needed by students to manage their financial resources and it can help them for their daily life activities as they help people to deal with the day to day financial matters and make the right decisions (Kempson, Collard, & et al, 2006).