INFLUENCE OF PARENTAL SOCIALIZATION AND FINANCIAL LITERACY ON SAVING BEHAVIOR OF YOUTHS

Abstract

The general objective of this study is to examine the effect of parental socialization and financial literacy on saving behavior of youths in Kirtipur Municipality. Some of the specific objectives of this study are as follows: to examine the saving behavior of youths in Kirtipur Municipality, to identify the relationship between financial literacy and parental socialization on saving behavior of youths in Kirtipur Municipality and to examine the impact of gender and marital status on financial literacy and parental socialization on saving behavior of youths in Kirtipur Municipality. This study employed descriptive and causal comparative research designs to deal with the fundamental issues of the study. The study has considered 400 samples for conducting the study through convenience sampling method. A structured questionnaire was prepared and used to collect information regarding various dimensions of parental socialization, financial literacy and saving behavior. Descriptive statistics, ANOVA, Pearson’s Correlation, Simple linear regression were conducted to make analysis of data. The results of this study demonstrate that both parental socialization and financial literacy have positive impact on saving behavior youths. Children receive some kind of financial teaching from parents and their willingness to save increased due to receiving financial education from their parents. Youths who receive financial teaching, experience sharing, habit formation, guidance and control tend to save more than that of others. The study also revealed that there is significant relationship between financial literacy and saving behavior of youths. This research revealed that students who have financial literacy exhibit more saving behavior as compared to others who do not have financial knowledge. Therefore, parents must guide their children while making financial decisions. The result of this study might be useful for policy makers, financial institutions and parents to develop a better strategy to increase the saving behavior of youths. Keywords: Financial literacy, saving behavior, financial knowledge, parental socialization, youths.