Impact of Financial Literacy on Saving Behavior Among Youth in Higher Education in Context of Biratnagar

Abstract

This study investigates how financial literacy dimensions influence saving behaviour among higher-education youth in Biratnagar. Using primary data from 210 respondents via a structured questionnaire, the analysis employs correlation and multiple regression to examine the effects of financial knowledge, attitude, behaviour, skills, and self-efficacy on saving behaviour. Results reveal that financial knowledge, attitude, and behaviour each exert a significant positive influence on saving behaviour, indicating that greater knowledge, more favourable attitudes, and prudent financial practices enhance savings. Conversely, financial stress negatively affects saving behaviour, suggesting that heightened stress reduces propensity to save. Although financial self-efficacy shows a positive association, it is statistically insignificant, implying it does not meaningfully predict saving behaviour in this context. Notably, financial behaviour emerges as the strongest predictor of saving behaviour among all variables. These findings underscore the importance of promoting practical financial behaviours and mitigating financial stress to foster healthier saving habits among young students.