The Saving Behaviour of University Students in South Africa

Abstract

This study was necessitated by the fact that, thus far, no prior research on the saving behaviour of young adults, particularly university students, had been undertaken in a South African context. The primary objective of this study was to investigate and identify the saving behaviour of university students in South Africa. To meet this objective, the study investigated the following aspects:
 The importance of saving for households and the economy, and the role that saving motives play in encouraging positive saving behaviour.
 The economic, psychological and behavioural theories that attempt to explain the saving behaviour of individuals.
 The importance of placing young adult saving behaviour into context in order to identify gaps in people’s knowledge of the development of saving behaviour in young adults.
The study was conducted using a quantitative approach by means of a survey. A structured questionnaire was developed to assess and collect data on participants’ demographic information as well as their saving behaviour. A total of 248 students from University of Pretoria, Pretoria, South Africa completed the questionnaire. The data was analysed using parametric statistical techniques.
The study led to the following important findings:
 University students in South Africa do engage in positive saving behaviour.
 Male university students engage in better saving behaviour than female university students.
 With regard to ethnicity, non-white university students engaged in better saving behaviour as compared to their white counterparts.
 Having a part-time job while studying resulted in better saving behaviour compared to non-working full-time students.
This study’s conclusions indicate that the saving decisions made by university students in South Africa are influenced by behavioural factors. The study has provided a solid foundation for further research into this field in an emerging economy such as South Africa.

Keywords: saving behaviour, university students, South Africa, financial literacy, financial socialization

JEL Classification: behavioural finance, consumer financial decision-making, financial literacy, saving behaviour