Impact of financial literacy on saving behavior of the Nepalese employee

Abstract

The main purpose of the study is to examine the peer and parental influences on the saving behaviour of the Nepalese employee and to know which factors are more influences on saving behaviour of Nepalese employee. This research was study to examine the peer and parental influences on the saving behaviour of the Nepalese employee and to know which factors are more influences on saving behaviour of Nepalese employee. This study helps to know the how does the impact of peer influences on the saving behaviour of the Nepalese employee and how much influence on the saving behaviour of Nepalese employee peer. Influencing factors of saving behaviour like peer and parents are taken into consideration. This consideration was derived from the depth review of previous studies. In order to do so few basic and important data were derived from the thorough and in-depth review of the literature and self-conceptualization as well as understanding of the concerned researchers. Different demographic variables i.e., age, gender, education, marital status, monthly income level and monthly saving. The result is based on 225 respondent"s response. According to the results of the correlation analysis, there is a positive correlation between the Nepalese employee's saving behavior and peer and parental influences. Additionally, this value shows a moderately positive correlation between Nepalese employees' saving behavior and peer and parental influences. The results of the correlation show that the Pearson Correlation Coefficient between financial literacy and self-control with saving behavior of Nepalese employees are positively correlated. Additionally, this value shows a positive but modest correlation between Nepalese employees' saving behavior and their financial literacy and self-control. Also, there is significant impact of parental influences on the saving behavior of the Nepalese employee. Receiving financial teaching results in increment of willingness to save, total savings and ability to save. The Nepalese employee tend to maintain sound saving behavior if their parents encourage them to save as parents play facilitating and promoting role on the saving behavior. In the context of Nepal, there was saying parents are the first teacher and home is the first school to learn. So, the parental factor influences on the saving behaviour of Nepalese employee. Key words:"Peer"influences,"parental"influences,"financial"literacy,"and"self-control," saving"behaviour"