Kontakt 2023, 25(4):298-306 | DOI: 10.32725/kont.2023.042

Effect of social influence on the saving behaviour of freelancing undergraduate students, mediated by financial literacy and self-controlSocial Sciences in Health - Original article

G S Prakasha1, *, Jose Shruti1, Joseph Jestin2, Sebastian Mathai1, S Thirumalesha3
1 Christ University, Bangalore, India
2 Christ Junior College, Bangalore, India
3 Mount Carmel College, Bangalore, India

Currently, India is among the countries with the largest youth population with 65% of the people aged below 35 years. These youths engage themselves in a multitude of things which generation-x was not aware. Their daily routine, study habits, entertainment, computer knowledge, and financial affairs are different from that of earlier generations. There is a need to study their financial situation and saving habit as their approach towards enjoyment, recreation, and lifestyle are influenced by factors like social media and popular culture. This study aims to find the mediation effect of financial literacy and self-control on the relationship between social influence and saving behaviour of undergraduate (UG) students, who are freelancing while pursuing their studies. The study obtained 357 responses to questionnaires through purposive sampling method. The study adopted causal mediation research design and employed mediation analysis to find the direct, indirect, and total effects of the relationship between social influence and saving behaviour among freelancing UG students. The results of the study revealed a partial mediation effect, indicating that the social influence not only had a direct impact on the saving behaviour of UG students in India, but also mediated it through financial literacy and self-control. Further research could focus on understanding students' knowledge of digital-financial management, as digitisation of the financial sector is rapidly expanding.

Keywords: Digital finance; Financial awareness; Financial management; Parental influence
Conflicts of interest:

The study sought permission from research conducts and ethics committee to carry out the present study. The researchers obtained informed consent from all the participants of the study. The participants were given the privilege to withdraw from the study at any point of time. The data collected is stored in a password-protected file to ensure data security and is accessible only to the researchers. The authors have no competing interests to declare.

Received: June 8, 2023; Revised: September 29, 2023; Accepted: November 13, 2023; Prepublished online: November 21, 2023; Published: December 18, 2023  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Prakasha GS, Shruti J, Jestin J, Mathai S, Thirumalesha S. Effect of social influence on the saving behaviour of freelancing undergraduate students, mediated by financial literacy and self-control. Kontakt. 2023;25(4):298-306. doi: 10.32725/kont.2023.042.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Alekam JME, Salleh MS, Mokhtar SS (2018). The effect of family, peer, behavior, saving and spending behavior on financial literacy among young generations. Int J Organ Leadersh 7(2018): 309-323. Go to original source...
    2. Ali MAS, Ammer MA, Elshaer IA (2022). Determinants of investment awareness: A moderating structural equation modeling-based model in the Saudi Arabian context. Mathematics 10(20): 3829. DOI: 10.3390/math10203829. Go to original source...
    3. Alshebami AS, Aldhyani TH (2022). The interplay of social influence, financial literacy, and saving behaviour among Saudi youth and the moderating effect of self-control. Sustainability 14(14): 8780. DOI: 10.3390/su14148780. Go to original source...
    4. Alyahya RY (2017). Financial literacy among college students in Saudi Arabia. Master's Thesis, School of Economics, The University of Queensland. [online] [cit. 2023-01-22]. Available from: https://espace.library.uq.edu.au/view/UQ:677345
    5. Ammer MA, Aldhyani TH (2022). An investigation into the determinants of investment awareness: Evidence from the young Saudi generation. Sustainability 14(20): 13454. DOI: 10.3390/su142013454. Go to original source...
    6. Ansari Y, Albarrak MS, Sherfudeen N, Aman A (2022). A study of financial literacy of investors - a bibliometric analysis. Int J Financ Stud 10(2): 36. DOI: 10.3390/ijfs10020036. Go to original source...
    7. Bandaranayake R, Iqbal T, Galpaya H, Senanayake L, Perampalam S (2020). "Now we are Independent": Female Online Freelancers in India and Sri Lanka. Proceedings of the 3rd International Conference on Gender Research, pp. 40-47. Reading, UK: University of Reading. DOI: 10.34190/igr.20.121. Go to original source...
    8. Bandura A (1997). Self-efficacy: The exercise of control; American Psychological Association: Washington, DC, USA, p. 604.
    9. Brandstätter H (1988). Sechzehn Persönlichkeits-Adjektivskalen (16PA) als Forschungsinstrument anstelle des 16PF [Sixteen personality adjective scales as a substitute of the 16PF]. Z Exp Angew Psychol 13: 53-63. DOI: 10.23668/psycharchives.10967. Go to original source...
    10. Canova L, Paladino G (2023). Gen Z, personality traits and sustainability awareness: An econometric investigation. Munich Personal RePEc Archive, pp. 1-15.
    11. Chalimah SN, Martono S, Khafid M (2019). The saving behavior of public vocational high school students of business and management program in Semarang. J Econ Educ 8(1): 22-29. DOI: 10.15294/jeec.v8i1.29741. Go to original source...
    12. Chellasamy A, Almeida SM, Prakasha GS, Nagarathinam A, Rangasamy S (2022). Social Media Disengagement Among Gen Y and Gen Z: a Quantitative Investigation. Media Literacy and Academic Research 5(1): 230-252.
    13. Chia YK, Chai MT, Fong SN, Lew WC, Tan CT (2012). Determinants of saving behaviour among the university students in Malaysia. Universiti Tunku Abdul Rahman Faculty
    14. of Business and Finance Department of Commerce and Accountancy, pp. 1-109. [online] [cit. 2023-01-22]. Available from: https://www.semanticscholar.org/paper/Determinants-of-saving-behaviour-among-the-students-Chia-Chai/7fb388eeb692ba855ac982d2c5e269d90da77f62
    15. Dewi PSS, Leon FM, Purba YE (2023). Factors that affect financial well- being in master program students. Int J Manag Stud Soc Sci Res, pp. 163174. DOI: 10.56293/IJMSSSR.2022.4559. Go to original source...
    16. Dobrowolski Z, Drozdowski G, Panait M (2022). Understanding the impact of generation Z on risk management - a preliminary views on values, competencies, and ethics of the generation Z in public administration. Int J Environ Res Public Health 19(7): 3868. DOI: 10.3390/ijerph19073868. Go to original source... Go to PubMed...
    17. Elshaer IA, Sobaih AEE (2023). Antecedents of risky financial investment intention among higher education students: a mediating moderating model using structural equation modeling. Mathematics 11(2): 353. DOI: 10.3390/math11020353. Go to original source...
    18. Faisal A, Fauzi A, Respati DK (2023). The effect of financial literacy, self control, and peers on saving behavior students of state vocational high school in west Jakarta region. International Journal of Multidisciplinary Research and Literature 2(2): 121-134. DOI: 10.53067/ijomral.v1i1. Go to original source...
    19. Fietroh MN, Mandasari J (2022). The impact of financial knowledge, financial attitude, and parents' income on financial management behaviour in generation Z. Iconic Res Eng J 5(7): 61-65.
    20. Gomez E, Zhou J, Yu J (2023). Financial literacy of college students: Focus on first-generation students. J Bus Divers 23(1): 1-8. Go to original source...
    21. Griesdorn T, Lown JM, DeVaney SA, Cho SH, Evans D (2014). Association between behavioral life-cycle constructs and financial risk tolerance of low-to moderate-income households. J Financ Couns Plan 25(1): 27-40.
    22. Hair JF (2003). Essential of business research methods. United Stated of America: John Wiley & Sons, 440 p.
    23. Hartono U, Isbanah Y (2022). Saving behaviour: What are the motives that influence them to save? J Ekon Bisnis Kewirausahaan 11(3): 363. DOI: 10.26418/jebik.v11i3.56561. Go to original source...
    24. Hudayani AR, Ulupui IGKA, Buchdadi AD (2022). The influence of gender, lifestyle, and income on financial literacy in young employees through saving behavior as a moderating variable. Int J Soc Sci World (TIJOSSW) 4(2): 420-430. DOI: 10.5281/zenodo.7627402. Go to original source...
    25. Kassim AA, Nejad MY, Othman J, Mamat S (2022). Determinants of money management behaviour among Malaysian private universities students. Int J Bus Appl Soc Sci. DOI: 10.33642/ijbass.v8n8p2. Go to original source...
    26. Kathuria R, Kedia M, Varma G, Bagchi K, Khullar S (2017). Future of work in a digital era: The potential and challenges for online freelancing and microwork in India. Indian Council for Research on International Economic Relations (ICRIER). [online] [cit. 2023-01-22]. Available from: https://medha.org.in/user-content/uploads/2020/09/Future-of-Work-in-a-Digital-Era.pdf
    27. Kaur D, Vijay P (2023). An empirical study of financial literacy among school students in (National Capital Territory) of Delhi. J Pharm Negat Results 14(1): 716-726. DOI: 10.47750/pnr.2023.14.S01.99. Go to original source...
    28. Kaur J, Kaur S (2022). Study on managing work from home and freelancing employees during Covid-19 pandemic. Int J Creat Res Thoughts 10(2). [online] [cit. 2023-01-22]. Available from: https://ijcrt.org/papers/IJCRT2202172.pdf
    29. Le Fur E, Outreville JF (2022). Financial literacy, education and risk aversion: a survey of French students. Manag Finance 48(9/10): 1530-1543. DOI: 10.1108/MF-10-2021-0509. Go to original source...
    30. Lusardi A, Mitchell OS (2011). Financial literacy and planning: Implications for retirement wellbeing (No. w17078). National Bureau of Economic Research, pp. 1-37. DOI: 10.3386/w17078. Go to original source...
    31. Mawad JL, Athari SA, Khalife D, Mawad N (2022). Examining the impact of financial literacy, financial self-control, and demographic determinants on individual financial performance and behavior: An insight from the Lebanese crisis period. Sustainability 14(22): 15129. DOI: 10.3390/su142215129. Go to original source...
    32. Mpaata E, Koske N, Saina E (2021). Does self-control moderate financial literacy and savings relationship? A case of micro and small enterprise owners. Curr Psychol 42. DOI: 10.1007/s12144-021-02176-7. Go to original source...
    33. Mazzatto M (2022). Financial literacy and investing habits of generation Z as it pertains to financial marketing. Bryant University (honors thesis).
    34. Meylandariska, Tasman A (2022). The internal locus of control and financial management behavior. Operations Management and Information System Studies 2(4): 275-284. DOI: 10.24036/omiss.v2i4.86. Go to original source...
    35. Nanda AP, Banerjee R (2021). Consumer's subjective financial well-being: A systematic review and research agenda. Int J Consum Stud 45(4): 750-776. DOI: 10.1111/ijcs.12668. Go to original source...
    36. Nasir NA, et al. (2023). Improving financial management literacy among undergraduate students in east coast Malaysia. In: Alareeni B, Hamdan A (Eds). Innovation of Businesses, and Digitalization during Covid-19 Pandemic. ICBT 2021. Lecture Notes in Networks and Systems, vol. 488. Springer, Cham. DOI: 10.1007/978-3-031-08090-6_63. Go to original source...
    37. Novitasari D, Juliana J, Asbari M, Purwanto A (2021). The Effect of Financial Literacy, Parents' Social Economic and Student Lifestyle on Students Personal Financial Management. Econ Educ Anal J 10(3): 522-531. DOI: 10.15294/eeaj.v10i3.50721. Go to original source...
    38. Otto AMC (2009). The economic psychology of adolescent saving. Exeter: University of Exeter, 325 p.
    39. Owusu GMY, Korankye G, Otchere OAS, Kriese M (2022). Money on the mind: Emotional and non-cognitive predictors and outcomes of financial behaviour of young adults. SN Bus Econ 2(11): 165. DOI: 10.1007/s43546-022-00340-0. Go to original source...
    40. Pamikatsih TR, Lusia A, Rahayu AS, Maisara P, Farida A (2022). The influencing factors for financial behavior of gen Z. 2nd International Conference of Business and Social Sciences, pp. 440-449.
    41. Pangestu S, Karnadi EB (2020). The effects of financial literacy and materialism on the savings decision of generation Z Indonesians. Cogent Bus Manag 7(1): 1743618. DOI: 10.1080/23311975.2020.1743618. Go to original source...
    42. Peiris TUI (2021). Effect of Financial Literacy on Individual Savings behavior; the Mediation Role of Intention to Saving. Eur J Bus Manag Res 6(5): 94-99. DOI: 10.24018/ejbmr.2021.6.5.1064. Go to original source...
    43. Philippas ND, Avdoulas C (2019). Financial literacy and financial well-being among generation-Z university students: Evidence from Greece. Eur J Finance 26(4-5): 360-381. DOI: 10.1080/1351847X.2019.1701512. Go to original source...
    44. Poniran H, Tamsir F, Zain NNM, Rahman ARA (2022). Determinants of saving behaviour among university students in Selangor, Malaysia: Mediating role of self-spending control. Selangor Bus Rev 7(2): 19-33
    45. Prakasha GS, Kenneth A, Lapina M (2023). Social media disorder in relation to device screen time and autosuggested social media content engagement. Kontakt 25(2): 117-123. DOI: 10.32725/kont.2023.021. Go to original source...
    46. Prasetyo AA, Rahadi RA (2022). A conceptual study on the influence of financial literacy and behavioral biases on generation Z investment decision making in the stock market. Himalayan J Econ Bus Manag 3(2). [online] [cit. 2023-01-22]. Available from: https://himjournals.com/article/articleID=606
    47. Rosdiana R (2020). Analysis of investment interests, motivation, social environment, financial literacy (Comparative study of generation Z and millennial generation). Int J Bus Econ Law 22(1): 111-121. Go to original source...
    48. Sconti A (2022). Digital vs. in-person financial education: What works best for generation Z?. J Econ Behav Organ 194: 300-318. DOI: 10.1016/j.jebo.2021.12.001. Go to original source...
    49. Seldal MMN, Nyhus EK (2022). Financial vulnerability, financial literacy, and the use of digital payment technologies. J Consum Policy (Dordr) 45(2): 281-306. DOI: 10.1007/s10603-022-09512-9. Go to original source... Go to PubMed...
    50. Setiawan M, Effendi N, Santoso T, Dewi VI, Sapulette MS (2022). Digital financial literacy, current behaviour of saving and spending and its future foresight. Econ Innov New Technol 31(4): 320-338. DOI: 10.1080/10438599.2020.1799142. Go to original source...
    51. Shankar N, Vinod S, Kamath R (2022). Financial well-being - a generation Z perspective using a structural equation modeling approach. Invest Manag Financial Innov 19(1): 32-50. DOI: 10.21511/imfi.19(1).2022.03. Go to original source...
    52. Shinu, Mullappallykayamkulath MA (2022). Digital financial literacy and its impact on the financial behaviour of millennials: An empirical investigation. Int J Financial Manag 12(3): 10-16.
    53. Singhal S, Prakash N (2023). A narrative inquiry into the meaning of career identity of Indian emerging adults amid Covid-19. Int J Educ Vocat Guid 6(1): 26. DOI: 10.1007/s10775-023-09590-2. Go to original source... Go to PubMed...
    54. Sobaih AEE, Elshaer IA (2023). Risk-taking, financial knowledge, and risky investment intention: Expanding theory of planned behavior using a moderating-mediating model. Mathematics 11(2): 453. DOI: 10.3390/math11020453. Go to original source...
    55. Stibe A, Cugelman B (2019). Social influence scale for technology design and transformation. In Human-Computer Interaction - INTERACT 2019: 17th IFIP TC 13 International Conference, Paphos, Cyprus, September 2-6, 2019, Proceedings, Part III 17, pp. 561-577. Springer International Publishing. DOI: 10.1007/978-3-030-29387-1_33. Go to original source...
    56. Susanti, Hardini HT, Pratiwi V, Bahtiari MD (2023). Learning finance, financial literacy and financial technology as predictors of student financial behavior in the covid-19 pandemic era. Unima International Conference on Social Sciences and Humanities (UNICSSH 2022), pp. 546-552. Atlantis Press. DOI: 10.2991/978-2-494069-35-0_67. Go to original source...
    57. Tiwari A, Yadav A (2022). A study of financial literacy and financial behaviour among millennials and generation Z. Journal of the Asiatic society of Mumbai. DOI: 10.5281/zenodo.7251292. Go to original source...
    58. Trzcińska A, Sekścińska K, Maison D (2021). The role of self-control and regulatory foci in money-saving behaviours among children. Curr Psychol 40: 344-354. DOI: 10.1007/s12144-018-9944-1. Go to original source...
    59. Utami N, Sitanggang ML (2021). The analysis of financial literacy and its impact on investment decisions: A study on generation Z in Jakarta. Inovbiz: Jurnal Inovasi Bisnis 9(1): 33-40. DOI: 10.35314/inovbiz.v9i1.1840. Go to original source...
    60. Wee LLM, Goy SC (2022). The effects of ethnicity, gender and parental financial socialisation on financial knowledge among gen Z: The case of Sarawak, Malaysia. Int J Soc Econ 49(9): 1349-1367. DOI: 10.1108/IJSE-02-2021-0114. Go to original source...
    61. Wongsowinoto F, Susanto S (2022). The effect of financial knowledge, technology, and behavioral control on student financial behavior. International Journal of Accounting Finance in Asia Pasific (IJAFAP) 5(3): 50-60. DOI: 10.32535/ijafap.v5i3.1879. Go to original source...
    62. Worang J, Tulung JE, Pandowo MH (2022). The influence of financial literacy and financial inclusion on saving behavior in Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi 10(4): 893-902. DOI: 10.35794/emba.v10i4.43656. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content