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

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  • Ali Saleh Alshebami

    (The Saudi Investment Bank Chair for Investment Awareness Studies, The Deanship of Scientific Research, The Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Applied College in Abqaiq, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Theyazn H. H. Aldhyani

    (The Saudi Investment Bank Chair for Investment Awareness Studies, The Deanship of Scientific Research, The Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Applied College in Abqaiq, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

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.

Suggested Citation

  • Ali Saleh Alshebami & Theyazn H. H. Aldhyani, 2022. "The Interplay of Social Influence, Financial Literacy, and Saving Behaviour among Saudi Youth and the Moderating Effect of Self-Control," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8780-:d:865409
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    4. Ibrahim A. Elshaer & Abu Elnasr E. Sobaih, 2023. "Antecedents of Risky Financial Investment Intention among Higher Education Students: A Mediating Moderating Model Using Structural Equation Modeling," Mathematics, MDPI, vol. 11(2), pages 1-18, January.
    5. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    6. Yuanyuan Guo & Can Liu & Hao Liu & Ke Chen & Dan He, 2023. "Financial Literacy, Borrowing Behavior and Rural Households’ Income: Evidence from the Collective Forest Area, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    7. Mohamed Ali Shabeeb Ali & Mohammed Abdullah Ammer & Ibrahim A. Elshaer, 2022. "Determinants of Investment Awareness: A Moderating Structural Equation Modeling-Based Model in the Saudi Arabian Context," Mathematics, MDPI, vol. 10(20), pages 1-18, October.

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