The Interplay of Social Influence, Financial Literacy, and Saving Behaviour among Saudi Youth and the Moderating Effect of Self-Control

Abstract

This study examined the impact of social influence, i.e., parents and peers, on the level of financial literacy among Saudi young adults (students). It also assessed the effect of financial literacy on the development of saving behaviour and the role of self-control as a moderator in the relationship between financial literacy and saving behaviour among the same respondents. The study’s sample included 270 respondents (male and female) from an applied college affiliated with King Faisal University. The study employed partial least squares structural equation modelling (PLS-SEM) for data analysis and interpretation. Some intriguing findings were generated. It was discovered that the influence of both parents and peers can positively predict financial literacy. Furthermore, financial literacy can positively impact young people’s saving habits. One surprising finding was that self-control negatively moderated the relationship between financial literacy and saving behaviour. Self-control was found to dampen the ties between Saudi young people’s financial literacy and saving behaviour.

Impact of financial literacy and financial confidence on the savings behaviour of the farmers: the Indian scene

“…In addition to FL, age, education, wealth and employment status are positively associated with saving behaviour, while household size is negatively associated with it (Baidoo et al, 2018). Alshebami and Aldhyani (2022) observed that financial socialization positively mediates the relationship between FL and savings behaviour. On the other hand, FL is also observed to positively moderate the relationship between risk preference and savings behaviour, and income is also noticed to significantly affect saving behaviour through such risk preference (Amari et al, 2020).…”

“…, 2018). Alshebami and Aldhyani (2022) observed that financial socialization positively mediates the relationship between FL and savings behaviour. On the other hand, FL is also observed to positively moderate the relationship between risk preference and savings behaviour, and income is also noticed to significantly affect saving behaviour through such risk preference (Amari et al.…”

Social Disadvantages of Ease of Transactions Using Blockchain

“…Due to its distributed nature, blockchain technology may exacerbate the existing digital divide between the well-off and the rest of the population (Henninger & Mashatan, 2022). The gap between the financially literate and the financially illiterate, the wealthy and the poor, may grow even wider as a result of this (Alshebami & Aldhyani, 2022) tax evasion, and fraudulent transactions may all be made easier by the anonymity and lack of oversight in some blockchain systems (Teisserenc & Sepasgozar, 2021b). The money from crimes and bribes can be concealed by the anonymity of online transactions (Sanz-Bas et al, 2021).…”

Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia

“…According to Aguila et al (2011), retirees tend to control their spending and practice responsible financial behaviour due to changes in lifestyle and better money management. Moreover, individuals who practice responsible financial behaviour, especially in financial planning and regular savings, have higher financial stability and better living standards (Alshebami & Aldhyani, 2022; Sabri & Aw, 2020; Topa et al, 2018; Xiao, 2008). In addition, a review of past studies reveals that financial behaviour plays an essential role in retirement preparedness (Hauff et al, 2020; Noviarini et al, 2021).…”