The College Youth Saving Pattern Analysis; an Islamic Approach

Document Type : Science - Research (Islamic Financial Theory)

Author

Assistant Professor, Kurdistan University, Kurdistan, Iran

Abstract

Saving, emphasized in Islamic lifestyle, influences the success of individuals, households and society. This research, therefore, studies the factors affecting the saving behavior of the college youth with an Islamic approach. The methodology is descriptive and exploratory and in terms of target, it is functional. The population of this study was administration and economics students selected through convenience sampling. The research instrument was a questionnaire the validity of which was confirmed by a panel of experts. In order to evaluate the construct validity (including convergent and discriminant ones) and the reliability of the research instrument (composite reliability and average variance extracted) and to estimate the research measurement model, exploratory and confirmatory factor analyses have been used. Also, partial least squares structural equation modeling was used to test the hypotheses. According to the research results, with the exception of the variable of peer influence, the other variables (financial literacy, parental socialization and self-control) have a positive and significant effect on students' saving behavior. The financial literacy variable was the only variable that mediated the relationship between other independent variables and the saving pattern. In addition, demographic variables such as gender, age, education, field of study, type of university, marital status and employment are also considered as moderating variables in the results analysis. For example, the saving patterns of male and female students are different.

Keywords

Adelpour, M, H. (1396). A Study and Comparison of Parenting Styles from the Perspective of Islam and Western Scholars. Islamic Insight and Education Quarterly, 14 (43), 73-100 (In Persian).
Agnew, S. (2018). Empirical Measurement of the Financial Socialisation of Children by Parents. Young Consumers. 19(4), 421-431.
Alekam, J.M.E., Salleh, M.S., & Moktar, S.S. (2018). The Effect of Family, Peer, Behavior, Saving and Spending Behavior on Financial Literacy among Young Generations. International Journal of Organizational Leadership, 7, 309-323.
Amari, M., Salhi, B., & Jarboui, A. (2020). Evaluating the Effects of Sociodemographic Characteristics and Financial Education on Saving Behavior. International Journal of Sociology and Social Policy. 40(11/12), 1423-1438.
Bagheri Ramdani, H, A. (1390). The Role of Saving in Economic Development from the Perspective of Quran and Hadith. Fourth National Conference on the Holy Quran Safinat al-Najat Asr, Tabriz: Azerbaijan Shahid Madani University (In Persian).
Beshears, J., Choi, J. J., Laibson, D., Madrian, B. C., & Milkman, K. L. (2015). The Effect of Providing Peer Information on Retirement Savings Decisions. The Journal of Finance, 70(3), 1161-1201.
Bucciol, A., & Veronesi, M. (2014). Teaching children to save: What is the best strategy for lifetime savings? Journal of Economic Psychology, 45, 1-17.
Changwony, F. K., Campbell, K., & Tabner, I. T. (2021). Savings Goals and Wealth Allocation in Household Financial Portfolios. Journal of Banking & Finance, 124, 106028.
Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. Modern Methods for Business Research, 295(2), 295-336.
Dastranj, M. (1392). Investigating the Relationship between Family Characteristics and Socialization of Children. Journal of Women and Family Studies, 6 (22), 79-98 (In Persian).
Dangol, J., & Maharjan, S. (2018). Parental and Peer Influence on the Saving Behavior of the Youth. International Research Journal of Management Science, 3, 42-63.
De Boer, B. J., Van Hooft, E. A., & Bakker, A. B. (2015). Self-Control at Work: its Relationship with Contextual Performance. Journal of Managerial Psychology. 30(4), 406-421.
Delafrooz, N., & Paim, L. H. (2011). Determinants of Saving Behavior and Financial Problem among Employees in Malaysia. Australian Journal of Basic and Applied Sciences, 5(7), 222-228.
Duflo, E., & Saez, E. (2003). The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment. The Quarterly Journal of Economics, 118(3), 815-842.
Erskine, M., Kier, C., Leung, A., & Sproule, R. (2006). Peer Crowds, Work Experience, and Financial Saving Behaviour of Young Canadians. Journal of Economic Psychology, 27(2), 262-284.
Esenvalde, I. (2011). Psychological Predictors of Savings Behavior: Contrasting the Impact of Optimism and Burnout on Self-Control, Achievement Motivation and Savings Behavior. Alliant International University, Los Angeles.
Furnham, A. (1999). The Saving and Spending Habits of Young People. Journal of Economic Psychology, 20(6), 677-697.
Ganjoui, A; & Nayebzadeh, S. (1393). Investigating the Relationship between Religious Beliefs and Islamic Financial Literacy in Postgraduate Students. Quarterly Journal of Financial Knowledge of Securities Analysis, 7 (23), 45-55 (In Persian).
Gerrans, P., Moulang, C., Feng, J., & Strydom, M. (2018). Individual and Peer Effects in Retirement Savings Investment Choices. Pacific-Basin Finance Journal, 47, 150-165.
Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E., & Tatham, R.L. (2010). Multivariate Data Analysis (7th Ed.). New Jersey: Pearson Prentice Hall
Hermansson, C., & Jonsson, S. (2021). The Impact of Financial Literacy and Financial Interest on Risk Tolerance. Journal of Behavioral and Experimental Finance, 29, 100450.
Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Fed. Res. Bull., 89, 309.
Jafari, R; & Balali, I, (1394). Economic Socialization and Savings Behavior among Children. Social Science Quarterly, 12 (46), 247-270 (In Persian).
Khakpour, H; Hosumi, V; & Nikonejad, Z. (1393). Educational Functions of Self-Control and its Role in Mental Health from the Perspective of Quran and Hadiths. Journal of Medical History, 6 (21), 149-183 (In Persian).
Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial Literacy among the Young. Journal of Consumer Affairs, 44(2), 358-380.
Md Kassim, A.A., Tamsir, F., Azhar, Z., Azim, Z., Mohamed, J., & Meor Nordin, H.N. (2020). Students’ saving behaviour: Do Demographic Profile, Parents’ Background and Financial Literacy Matter? An Empirical Study in Private Universities in Selangor. International Journal of Psychosocial Rehabilitation, 24(1), 844-850.
Mohammadi Rishahri, M. (1388). Consumption Pattern from the Perspective of Quran and Hadith. Journal of Hadith Sciences, 14 (54), 9-37 (In Persian).
Mirabrahimi, S, A; Ahmadi, L; Habibzadeh, N; & Habibzadeh, Z. (1393). The Role of Parents in Raising a Child from the Perspective of Islam. The First International Congress of Religious Culture and Thought. Bushehr: Cultural Engineering Steering Center of the Public Culture Council (In Persian).
Murendo, C., & Mutsonziwa, K. (2017). Financial Literacy and Savings Decisions by Adult Financial Consumers in Zimbabwe. International Journal of Consumer Studies, 41(1), 95-103.
Nazemian, S; & Marvasti, A, (1397). The Role of Peers in the Identity and the Process of Identifying Children from the Perspective of Students and Teachers. The First National Conference on the Identity of Children in Islamic Iran in Preschool, Yazd: Ministry of Education, General Directorate of Education (In Persian).Otto, A. (2013). Saving in Childhood and Adolescence: Insights from Developmental Psychology. Economics of Education Review, 33, 8-18.
Parvizi, S; & Ahmadi, F. (1385). Peer Group and Adolescent Health; A Qualitative Research. Feyz Quarterly, 10 (40), 46-51 (In Persian).
Pavlou, P. A., & Fygenson, M. (2006). Understanding and Predicting Electronic Commerce Adoption: An Extension of the Theory of Planned Behavior. MIS Quarterly, 30(1), 115-143.
Prinstein, M. J., & Dodge, K. A. (Eds.). (2008). Understanding Peer Influence in Children and Adolescents. Guilford Press.
Sabri, M. F., & MacDonald, M. (2010). Savings Behavior and Financial Problems Smong College Students: The Role of Financial Literacy in Malaysia. Cross-Cultural Communication, 6(3), 103-110.
Seong, L. C., Kai, S. B., & Joo, G. G. (2011). The Analysis of Psychological Factors Affecting Savers in Malaysia. Middle Eastern Finance and Economics, 12, 77-85.
Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does Self-Control Predict Financial Behavior and Financial well-being? Journal of Behavioral and Experimental Finance, 14, 30-38.
Stukalina, Y. (2013). Management of the Educational Environment: the Context in Which Strategic Decisions are Made. Procedia - Social and Behavioral Sciences, 99, 1054-1062.
Torkashvand, E; Piri, M; & Heratian, A. (1398). A Study of Consumption and Savings in the Islamic Lifestyle. Iranian Islamic Pattern of Pattern Studies Quarterly, 7 (14), 79-112 (In Persian).
Webley, P., & Nyhus, E. K. (2006). Parents’ Influence on Children’s Future Orientation and Saving. Journal of Economic Psychology, 27(1), 140-164.
Zhu, A. Y. F. (2019). School Financial Education and Parental Financial Socialization: Findings from a Sample of Hong Kong Adolescents. Children and Youth Services Review, 107, 104532.
Zulfaris, M.D., Mustafa, H., Mahussin, N., Alam, M.K., Daud, Z.M. (2020). Students and Money Management Behavior of a Malaysian Public University. Journal of Asian Finance, Economics and Business, 17(3), 245-251.
  • Receive Date: 27 May 2021
  • Revise Date: 30 June 2021
  • Accept Date: 01 July 2021