FACTORS INFLUENCING THE SPENDING AND SAVING BEHAVIOURS OF YOUTH AGED 18- 25 YEARS OF AGE IN BWEYALE TOWN, KIRYANDONGO DISTRICT

ABSTRACT

The youth have increased their spending pattern and now have more autonomy over buying decisions. The youth are an influential group by virtue of their numbers in the total population, purchasing power, high level of leisure time, and exposure to abundance of information because of the technological advance with regards to marketing and advertisement. (Jamalludin .H. H et al 2018).

The aim of my study is to assess the saving and spending habits of the youth and the variables which have an impact on it. The spending of the youth of Bweyale these days has drastically changed with the emergence of various  new products, increasing numbers of people, and financial opportunities compared to previous years, as per the  National Population and Housing Census in 2014 which had the youth make up a 78% of the population with an average of 5$ per earning per day.

The adopted method for this study is a survey design, based on data collection through a structured questionnaire from randomly selected youth.  Descriptive analysis, percentages and ranks of results revealed that the influence of peers, influence of parents and financial literacy of the youth are significantly correlated with the saving and spending habits. A sample of 100 youth of Bweyale town aged 18 – 25 years, not earning monthly salary and never married, was taken for the research.

Key words: Youth, Spending patterns, Saving patterns, financial literacy, Peer influence, compulsive buying, materialism

1: INTRODUCTION  

The youth make up one third of the global population (World Bank 2015) with Asia and Africa having  high dependence ratios of people younger than 15 and older than 64 (Kilimani 2017). A youth in Uganda is a person who is aged 18 – 30 years (UBOS 2017). ‘Youth are valued possessions of the nation. Without them there is no reconstruction and development programme. Without them there is no future. Their needs are immense and urgent.” – Former president of South Africa, Nelson Mandela (May, 1999). The youth in Bweyale are fueled by social consciousness that implies a “want it all” attitude and have been classified “the abazukulu” by H.E. Yoweri Kaguta Museveni, the president of Uganda, due to their active participation with 80% of elective positions in the recently concluded National Elections in January 2021, than any other election held in the country after decades of exclusion (Ewoku A. 2021).

Attitude is defined as a psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor (Eagly and Chaiken, 1993). An attitude has the cognitive, affective and behavioral components. This view of attitudes has a direct impact on the way youth who hold them behave towards specific attitude objects. For instance youth with positive attitudes towards saving tend to save more than those with negative ones. (Sifunjo E. K, 2014)

Among more than 56 tribes inhabiting Bweyale, tradition dictated collectivism over individualism. In collectivism, youth used to live with parents and it emphasized group integrations, usually around the family, and achievement of group over individual goals. With the emergence of the western culture, technology and fast-growing highly competitive economies, nowadays the norm is an individualism  which awards social status to personal accomplishments and makes an individual stand out (Marijana M. Kotlaja, 2018). This change has brought vitality among the youth who now wish to earn, spend by themselves instead of asking for money from their parents, making them targets by marketers who continuously monitor the changing trends of the micro and macro environments with them as major consumers. (Hofsede,  2001).

Individuals below the age of 25years with no or limited experience in saving and spending as they learn to live within their means have a higher rate of debts because of their limited experience in finance and managing money (Kim teal, 2016).There is an abundance of research done on saving and spending habits of adults but there is very little research on saving particularly among the youth and adolescents (Burnham, 1999; Webly et al., 1991).

The word “saving” has abroad meaning and numerous explanations. In economic contexts, saving is defined as the residual income after deducting current consumption over a certain period of time (Browing & Lusardi, 1996; Warneryd, 1999). Conversely, saving in psychological context is referred to the process of not spending money during a current period in order for it to be used in the future (Warneryd, 1999). In other word, saving is unspent income. Methods of saving include putting money aside in, for example, a deposit account, pension account. Saving also involves reducing expenditure. Spending means paying money for a particular thing or service. (Ajeesh PP, 2019). Saving and spending is dependent on the ability and willingness to save or spend (Katonah, 1975), saving and spending are dependent on disposable income, financial expectations and attitudes of the youth. “Even though they had been indebted, those who saved and had savings, felt more optimistic and in control of their lives than those who had debts but no savings” (Furnham, 1997). The theory of economy defines saving as behavior in which a part of the income has not been released for consumption. This definition is static since it relates income to consumed earnings, but does not account for conscious decisions on saving, motives of saving or methods of self-control that are a subject of analysis in the psychological theory of saving (Zaleskiewicz 2011)

Problem statement. The study is motivated by the need to determine the factors that influence the spending, saving behaviors of youth in context of the business environment in which they operate.

Research questions. The following research questions were examined:

RQ1. Is there a relationship between the level of financial knowledge and saving and spending behavior?

RQ2. Is there an association between gender of youth and saving and spending patterns?

RQ3. What role do parents play in the saving and spending of their children?

RQ4. What is the effect peer influence on the spending and saving patterns of youth?

RQ 5. What is relationship between materialism and compulsive buying, how does it affect saving and spending of youth?

Aim of study: This study is to understand the saving and spending patterns of youth and takes into account the effect of peer pressure, parental influence and financial literacy on the saving and spending of the youth in Bweyale of 18-25years.

Specific objectives of the study. To achieve the aim of the study, the following objectives were pursued:

  1. To determine the overall level of financial literacy among youth
  2. To identify the impact of parents to the saving and spending behavior of their children
  3. To assess the effect of peer influence on the saving and spending of youth
  4. To identify how compulsive buying and age affect the spending and saving behaviors of youth

Hypotheses. The following hypotheses were tested:

H1. The level of financial literacy among Bweyale youth is high

H2. There is no difference between gender and spending and saving patterns

H3. There is a high correlation between peer pressure and the saving and spending patterns of youth

H4. There is a high positive correlation between compulsive buying, age and impact on the saving and spending of youth

Scope and limitation of study. The study is limited to youth in Bweyale town, Kiryandongo district in the western part of Uganda, named after its chief town Kiryandongo, where the district headquarters are located. It is boarded by Nwoya district to the north, Oyam District to northeast, Apac to the east, and Masindi to the south and west. The location of the district headquarters lies approximately 225 kilometers, by road, northwest of Kampala, Uganda’s Capital and largest city. The coordinates of the district are: 0200N, 32 18E (Latitude: 32.3000). The district was established on 1st July 2010. Prior to this, Kiryandongo was a part of Masindi District. It is part of the Bunyoro sub-region which is conterminous with Bunyoro Kingdom. The 1991 Uganda National Census estimated the District’s population at about 83,405. According to the 2002 National Census, that population had increased to about 187.000. In 2012, the population was estimated at about 317,500, and in 2014 it was 268,188 among its 7 sub counties.

Bweyale is a home to many refugees and internally displaced people who live in harmony with the local residents. Destination of many business persons, including those seeking admission to refugee camp, it is about 220km north of Kampala City on Kampala-Gulu highway. This town is known to be home to more than 98,000 people with more than 50 ethnic groups, with 31,610 people as per the 2014 National Census. The refugee population outnumbers that of the indigenous residents, while the town is expanding fast in areas of business and infrastructure, achieving its uniqueness. In 1988, the area had less than 80 homesteads with much of the land idle and bushy, including the government 6 square mile ranch now home to the 56,000 refugees from South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. Added to the population count are the internally displaced from northern Uganda after insurgency. The indigenous population, according to the 2014 Uganda National Housing and population Census were estimated at 37,000. Interestingly, both the refugees and indigenous residents enjoy rights in managing and owning business ranging from retail, wholesale, and hospitality. The district is also home to many international humanitarian organizations in partnership with the office of the Prime Minister and the United Nations High Commission for Refugees i.e. UNHR, Refugee Law Project. Bweyale town has three health centers. Most referrals go to Kiryandongo hospital located 4km from Bweyale town centre (Daily monitor- 2018).

2: LITERATURE REVIEW

A study by Subhani, Hasan, Osman & Nayaz (2011) found out that age and compulsive buying are strongly related to each other with respect to the younger consumers. Compulsive buying is an understudied, but a growing, dysfunctional consumer behavior with harmful psychological and financial consequences. Observed from a clinical perspective, it as a psychiatric disorder, whereas recent proposals emphasize the increasing endorsement of materialistic values as a cause of uncontrolled buying (e.g. Ditmar, 2004b; Kassser &Kanner, 2004). With the dawn of the era of consumerism and the marketing mania, wants are tremendously exceeding needs and it has been widely observed that widespread consumerism and westernization have lured the youth into dissipating their earnings at an alarming rate. Sadly it is not only the hard-earned money that is being dissolved into the irresistibly tempting buying options but a plethora of opportunities exist to affect purchases without legal tender or debit card balance. Young people are faster to become impulsive spenders and prove reckless. With the ease of information through the internet and web technology, marketers have managed to capture a significant market of youth through online store sales. Today new trends in fashion, electronic gadgets, sports, video games and music are important contributors to wasteful spending among the youth. However, today’s young people although smart and independent, scarcely understand the value of money because of the desire to adopt extravagant lifestyles in addition to above mentioned factors (Shilpa Chhabra, 2016). Age is directly correlated with appositive attitudes towards saving behavior and attitudes become more positive as age increased. (Cavite cheval, 2019). With the decline of collectivism and dissolving local cultures, many are adopting western trends and thus the ‘growing’ rise in individualism shows early tendencies towards uncontrolled buying. The youth seem unable to resist advertising stimuli and demonstrate a lack of control over spending habits (Garces Prieto, 2002)

Financial literacy is defined as sufficient knowledge of personal finance facts and terms for successful personal financial management (Garman & Forgue, 1997). Meanwhile, Athes (2004) defines it as the ability to read, analyze, manage and communicate about the personal financial conditions that affect the material well-being. Cummins (et al, 2009) says that the lack of financial knowledge can affect financial behaviors negatively. The youth are not ready to handle the financial situations they face and do not plan their expenses. Financial literacy plays an important role in saving and spending of youth. Most of the younger individuals today are in debt, while attempting to align their spending habits and their income as they may spend more than what they have in their budget due to compulsive buying. (Lee, 2008) found out that young adults under the age of 30 now constitute the fastest growing age filing for bankruptcy with an alarming rise in suicides because of credit and bank loans. A study by (Dugas, 2001) further confirms that like no other generation, today’s 18-30-year-olds have grown up with a culture of debt as a product of a booming economy and expensive lifestyles. They often use loans to finance restaurant meals, or new tech gadgets they cannot afford. Those with some financial knowledge tend to thrive, save enough to run their businesses with ease and debt free. There is a significant correlation between financial literacy and saving and spending pattern. Lunt & Livingstone (1993) further examined the relationship between saving and borrowing. Habitual or regular savers were found to have different psychological motivations from borrowers, seeing debt as a failure or as a normal part of everyday life.

In a previous study, Webley and Nyhus (2005) investigated parent’s behavior influence on the economic behavior of their children. The results show that parental behavior and orientation have a weak but clear impact on the economic behavior of their children. According to a study by Otto (2009), there is empirical evidence that parents can promote the development of their childern’s skills important for saving, as the results showed that most of the youth’s saving behavior was caused by parental requests and requirements. Leister & Ganin (1996) divided individuals into two categories of parents: those that avoided speaking about financial matters and important purchases in front of their children and those that act on the assumption that children needed to be trained to be economically independent in the future. According to Tuvesson and Yu (2011) youth save because their parents want them to save and the sense of pride they achieve out of it. A study by Intaravorraphat et al. (2012) found out that children given money by their parents without having to work can attribute to bad spending habits in the future.

In studies that clarify individuals as compulsive buyers, the percentage of women ranges from 74 %( Hanley & Wilhelm, 1992) to over 93 %( Black, Repertinger, Gaffney, & Gabel, 1998). This is because of the stronger psychologically motivated buying in women. Emotional and identity related dimensions of shopping are more important to women than men (Babin, Darben, & Grifffin, 1994; Dittmar, Long, & Meek, 2004). Women tend to have appositive attitude towards browsing, shopping, and social interaction, associating with a ‘leisure frame’, whereas men’s attitudes tend to be negative, seeing buying in a ‘work frame’, as a task that they want to accomplish with the minimum input of time and effort (Campbell, 2000). However this depends on particular goods, but it can be argued that, overall, shopping plays a stronger emotional, psychological and symbolic role for women compared to men (Dittmar & Drury, 2000). However, a study done by Sereetrakul et al. (2013) revealed that female and male youth did not have different saving behavior, although females had a more positive attitude towards saving and shopping than males. In addition, females were more concerned about being rich or having a lot of money than males, while males had a more positive attitude towards spending money than females.

Beshears, Choi, Laibson, Madrain and Milkman (2010) conducted a study and the results showed a weak correlation between peer influence and saving behavior as the peer influence only encourages a small number of co-workers to participate in making saving plans. Both genders are greatly affected by peer pressure in an attempt to fit in and get approval from the social group they so desire with males being more affected than females. As both are affected by peers, in the study by Duflo and Saez (2001), the findings suggested that members of the same group share a common environment, which influences their behavior. People with similar preferences tend to belong to the same group. Both of these factors generate a correlation between group and individual behavior which consequently affect their saving and spending.

The plight of the young generation is that it is more vulnerable to the irresistible attempts of advertising done by strategic marketers, the availability of generous pocket money, personal credit, and access to credit cards of family members or high-paid jobs at prime age. (Shilpa Chhabra, 2016). Youth spending is  influenced by the  advanced marketing strategies of firms that have made the youth spend extravagantly on wants and needs to fit into the new fashion trends, or a social class they intend to join. By its spending, the youth thus increase in debt, which is especially relevant for those that have less saving information as they attempt to make a suitable budget. Among the factors that influence the budget greatly, the most significant is income, followed by satisfaction, peer information, advertisement information age, and entertainment (subhani, Hasan & Osman, 2011). Youth choose to buy a product that will meet their interest irrespective to its price.

The core values of current consumer culture are materialistic, and internalization of materialistic values as one’s personal goals leads individuals to a greater commitment to buying material goods based on both common sense and expert representation of materialism. A highly materialistic person believes that the acquisition of material goods is a central life goal, prime indicator of success, and key to happiness and self-definition (Richens, 2004). Highly materialistic youth are more likely to have favorable attitudes towards borrowing money, and to overspending (Watson, 2003). The youth also have stronger emotional and identity–related buying motivations: they buy goods in order to achieve mood regulation and move closer to an ideal identity (Dittmar et al, 2004). Moreover, if it is the case that materialistic value orientation is on the increase, particularly among the young people, then it may be that materialism could account for age difference in compulsive buying. Annual surveys of more than 200000 US youth demonstrate a dramatic increase in the importance attached to financial goals, an important component of materialism (Cf. Myers, 2000). The proportion of youth that reported that it was important or essential that they become very well off financially almost doubled from 39% in 1970 to 74% in 1998. If we accept the youth are more materialistic, then this value endorsement could be a psychological mediator of age difference in compulsive buying (Lindstrom, 2004; Linn, 2004; Schor, 2004).

3: RESEARCH METHODOLOGY

This is an explanatory study on the factors influencing the saving and spending behaviors of youth in Bweyale town, Kiryandongo District, Uganda. Quantitative method is employed by the researcher as the empirical assessments consist of numerical measurements and analysis. The researcher has followed a deductive approach by conducting the research based on existing theories and researches (Saunders, Lewis & Thornhill, 2009) to test the relationship between youths’ saving and spending behavior and the factors(financial literacy, parental influence, peer influence, age and compulsive buying).

According to Burns and Bush (2003), the method of data collection is determined by the type of data needed and pre-set research design. The two types of data are primary and secondary data. In the research, the primary data is collected via survey questionnaire technique which required less skill and sensitivity (Jankowicz, 2005). To increase the response rate, the researcher distributed and collected the self–administered questionnaires from the target respondents after they filled in their answers. An introductory letter will be presented, informed Consent and Confidentiality of each respondent will be maintained highly as NONE will be allowed to write their names – they receive codes and numbers instead. For example, for the 1st respondent he/she will be coded “001” and in Section A, if male “M”, female “F” as identification for more suitable format for data analysis. In this research, primary data ensures the most up-to-date information and realistic view to answer the hyposeses and research questions (Saunders et al, 2009).

Sampling design is a process to select an appropriate amount of units from the population of interest to provide accurate information about the entire population (Hair, Babin, Money & Samouel, 2003). The target population is defined as the entire group of people the researchers is interested in (Easton & Mc Coll, 1997). The target population for the research is youth of Bweyale town not earning monthly salary and less than 30yrs of age. A sampling frame is irrelevant for the study as it employs a non-probability sampling method. Meanwhile, a 100 students were chosen as respondents in this study. Calculated as per Samuel Mbuto (2004).

Sample size = D * H

T

Where: D – The number of days available for data collection

H- Number of hours per day

T- Total time spent on each respondent

Given D=12.5days, H=4, T=0.5hours, D= (HT)/T, D= (12.5*4)/0.5, D=100 Respondents

Since they are varied in personality and views, a more generalized result can be obtained. A non- probability sampling technique is employed in the research as it ensures good estimates of the population characteristics (Malhotra, 2010). The researcher adopted convenience sampling method to obtain data. This is the easiest non-probability sampling as the sample is selected randomly until the required sample size has been met (Saunders et al, 2009). Therefore, the questionnaires will be distributed to the Bweyale youth haphazardly to the amount equal to the sample size. 100 sets of questionnaires distributed are returned from the respondents and the data is processed. Consent from all respondents will be got before partaking part in the research. The purpose is to ensure the data is complete, standard quality. The process includes checking, editing and transcribing. Initially the researcher together with assistants will check and review each questionnaire to verify its completeness and incomplete questionnaires will be discarded.

All the data obtained from the questionnaires collected are interpreted and summarized in average, frequency and percentage distribution (Zikmund, 2003).

4; DATA ANALYSIS AND INTERPRETATION

This data analysis has two parts:

Part 1: interpretation of the findings using a figure or table

Part 2: a brief description of the finding

Data analysis enables describing and comparing variables numerically which enhances the statistical analysis and data interpretation (Saunders et al, 2

009). Pie charts are inserted to make the data more understandable and effectively communicate with the readers in visually appealing way (Hair et al, 2003).

Figure 1: Gender distribution of the respondents

N: 100

Source: Primary data

  • The majority 35% of respondents were in the age group of 23-24, 21-22 years with 21%, a
    nd 25years with 18% then 15% in the age bracket of 19-20 then lastly 08% in 18years.
  • The gender distribution of respondents as represented in Fig 1: 62% represented males and then 38 represented females of the respondents.
  • A majority of the respondents 73% save in the SACCO groups, about 17% of the respondents have a bank account. About 8% do not have accounts. According to Sherraders et al., 2011 reported that having a bank account at a younger age motivate youth to save.
  • Most of the respondents 65% of the respondents had a primary level education. About 24% have secondary and then 11% of the respondents did not attend any formal education.

Factors affecting saving and spending

Peer influence

Table 1: Percentage of opinions of respondents towards peer influence on saving and spending

N: 100

Question
1 Do you lend money to your friends? 37
2 Do you ever borrow money from your friends 32
3 Do your friends encourage you to spend? 18
Total 100

Source: primary data

According to the figure above, all respondents agree that all peers have a great influence on the spending of the youth. With 37% of the respondents lending money, 32% borrowing money and then the least 18% of the respondents admitted their friends encouraged them to spend.

Financial literacy

Table 2: Respondents opinions about financial literacy

n:87

Sn. 1 Question Percentage (%) grade
1 Do you think saving money is important? 87 I
2 Have you read books or researches about the importance of saving 08 II
3 Do you think planning your daily and monthly expenses is important 27 III
4 Is is important to do extra work to earn more and save 38 IV
Total 100

Source: primary data

Its inferred from the table that respondents agree to the fact that financial literacy plays an important role in the saving and spending pattern of youth.

Factors influencing spending

Table 3: factors influencing the spending of youth

N: 100

Sn Particulars V. important Important Neutral Un important V. unimportant Total
1 Advertisement 35 13 6 5 1 65
2 Celebrity endorsement 13 2 2 1 2 23
3 Impulse buying 0 0 1 1 0 2
4 Product labeling 6 3 0 1 0 10
5 Total 100

Source: primary data

A majority 65% of the respondents agree that advertisement influences their spending, 23% celebrity endorsement, a few product labeling and the least 2% impulse buying.

Figure 3: Maintaining a budget for monthly expenditure

A majority of the respondents 93% agreed it was important to maintain a monthly expenditure, with a majority of 56% of the respondents spend between 50,000shs – 100,000shs,  then 25% of them between 20,000- 50,000shs with the minority of 12% spending above 100,000shs. As seen by the figure 2 and table 4 below.

Figure 2: Respondents ideas on the importance of maintaining monthly expenditure

n:93

Source: primary data

Table 3: Amounts ranges spent by the respondents

n:93

Sn Amount Percentages (%) Grading
1 20,000 – 50,000 25 II
2 50,000-100,000 56 I
3 Above 100,000 12 III

Source: primary data

Categories of spending

   Table 4: Ways of how youth spend their money            

                                                                                                                                                       N: 100

Si no Particulars Percentage (%) Grading
1 Entertainment 53 I
2 Cloth 15 II
3 Electronics 19 III
4 Food 10 IV
5 Cosmetics 8 V
6 Others 5 VI

Source: primary data

While ranking, the first position is entertainment with a majority of 53%, second position 15% to cloth, 3rd position to electronics with 19%, food at 10%, cosmetics at 8% and lastly 5% in other factors that influence the respondents spending.

 

5: CONCLUSIONS AND RECOMMENDATIONS

Conclusions

The main objective of this study was to determine the factors affecting the saving and spending habits of youth. To investigate this issue, the researcher put the following variables: peer influence, parental influence, and amount in budget, financial literacy towards saving and spending habits of youth. The analysis in this research revealed that there is significant correlation between the saving and spending habits, influence of peers, parental influence and financial literacy.

Based on the result from the previous chapter, there is sufficient evidence to conclude that financial literacy has significant relationship with saving (87%). This finding indicates that the youth with higher level of financial literacy are more likely to save. It’s found consistent with the research of Sabra et al. (2010) which revealed that financial literacy is significantly related to saving behavior in a positive magnitude. Other researchers such as Delarosa et al. (2011) and Hilbert et al. (2003) also proved that individual’s saving behavior is significantly influenced by the financial literacy. Therefore, youth who have higher level of financial literacy are more likely to save as they have the ability to identify the importance and knowledge of saving. The studies of Hilgert, Hogarth and Beverly (2003) is found to be consistent with the above.  It may be concluded that the level of financial literacy is above average and its influence on the spending and saving behavior is very crucial.

Furthermore, the finding of this study proves that there is a negative relationship between peer influence and saving behavior. This is not in collaboration with results from a study conducted by Erskine et al. (2005) which focused on the predictors of young people’s saving behavior. However, the results consent with the studies of peer influence by Besmears et al. (2010) which proved that individual behavior is likely to be influenced by peers because a peer is a salient referent to an individual. One correspondent said ‘you cannot save little money, so me and my friends just spend all we make, we see no use to reduce our money in the name of saving.’’ The findings are in line with findings of a study by Duflo and Saez (2001) which found out that members of the same cohort who share same environment may influence behaviors of each other. Both these factors generate a correlation between group behavior and individual behavior which consequently affects their saving behavior. This indicates that most youth are in non-developmental friendships.

Recommendations

According to the law of numbers, larger sample size is more likely to be representative. (Saunders et al., 2009). Therefore, future research are recommended to draw larger sample size to generate a more accurate and representative manners (Lim et al., 2011). Meanwhile, the samples should be drawn from various locations of Uganda given that the youth perceptions and attitudes towards saving are likely to vary across cultures.

A behavioral intension is suggested to be included as mediating variable in future study as it can explain a person’s readiness to perform a given behavior (Janzen, 1991). For instance, perhaps a youth with high level of financial literacy and self-control is not likely to foster saving behavior because he or she does not have the intension to save. That is to say, the saving behavior is established only if the intension to save is formed, and the intension to save is typically affected by other independent variables such as financial literacy and self-control. Therefore, mediating variable can ensure the future researchers to certainly conclude upon the relationship between independent and dependent variables.

The future research is suggested to conduct longitudinal research to observe the saving behavior of youth overtime. This would facilitate the researchers to gain valuable data.

With respect to prevention of compulsive buying, the present findings suggest the benefits of guiding individuals towards critical reflection on materialistic values, both in terms of a personal value system and media literacy with respect to advertising messages that often emphasize (unrealistic) psychological benefits from buying new consumer goods. It has to be acknowledged, however the attempts to curb materialistic value orientation run counter to the prevailing economic and consumer climate geared towards increasing consumption, which makes this route to a reduction of compulsive buying difficult. For this reason, critical reflection on materialistic values may stand a chance of providing a basis for prevention and consumer education when it is encouraged early, youth being advised about unrealistic expectations of material goods, and why and how to avoid uncontrolled spending.

Appendix I: LIST OF REFERENCES

Beshears, J., Choi, J. J., Laibson , D., Madrain, B. C. & Milkman, K. L. (2010). The effect of providing peer information on retirement savings decisions. California: Stanford University.

Cavite Cheval (2019). Saving and spending habits of the Youth in Sultanate of Oman. The college of commerce and business Administration, Shofar University, Sultanate of Oman. ISSN- 2394-5125. Vole 7, issue 2, 2020.

Chen, H., & Volpe, R.P (1998). An analysis of personal financial literacy among Colledge students. Financial services Review, 7(2), 107-128.doi:10.1016/s1057-0810 (99)8006-7.

Cummins, M.M., Haskell, J.H., & Jenkins, S. J. (2009). Financial attitudes and spending habits of university freshmen. Journal of Economics and Economic Education Research, 10(1), 3.

Davidson, I. B. (2006). Financial Literacy important to future. Montana Business Quarterly: 44(3), p.22. Retrieved from http://www.accessmylibrary.com/coms2/summary 0286-33521732

Delafrooz, N. & Laily (2011). Determinants of saving behavior and financial problem among employees in Malayia. Australian Journal of Basic and Applied Sciences, 5(7), 222-228, 2011 ISSN 1991-8178

Dufflo, E. & Seaz, E. (2002). The role of information and social interactions in retirement plan decision: Evidence from a randomized experiment. Quarterly journal of Economics, 118, 815-842.

Erkine, M. Kier, C., Leung, A., & Spoule, R. (2005). Peer crowd, Work experience, and financial saving behavior of young Canadians. Journal of Economic Psychology

Furnham, A. (1999), the saving and spending habits of young people. Journal of economic psychology, 20(6), 677-697.

Furnham, A., & Goleta – Tanked, M.-P. (2002). Understanding Savings, pensions and life insurance in 16-21 – years old. Human Relations, 55, 603-628.

Hilgert, M. A., Hogarth, J.M., & Beverly S.B. (2003). Household financial Management; The connection between Knowledge and Behavior. Federal Reserve Bulletin, pp.309-322

Kasen, J., J & J. A., Lee. (2002). the influence of Culture on consumer Impulsive Buying Behavior. Journal soft consumer psychology, 12(2):163-176.

Leaser, D., &Ganin, M. (1996). Economic participation and economic socialization. The economic beliefs and behaviors of young people, Cheltenham, UK: Edward Elgar.

Lusardi, A., Mitchell, O. S., (2006). Financial Literacy among the young: evidence and implications for financial education. Business Economic, 42(1), 10. Retrieved from http://www.dartmouth.edu/alusardi/papers/preparedness.pdf

Manton, E. J., English, D.E., Avard, S., & Walker, J. (2006). What college freshmen admit to not knowing about personal finance? Journal of Colledge Teaching and Learning, 3(1), 12. Retrieved from htttp://www.cluteinstitute-onlinejournals.com/PDFs/200644.pdf

O’Quinn, T., C & R.J., Faber. (1989). compulsive buying: A phenomenological Exploration. Journal of Consumer Research, 16(2):163-176.

Otto A. M. C. (2009). The economic psychology of adolescent saving. Exeter: University of Exter.

Saluki, N., Abs Wahhabi, N., Zakary, N., Mazurka, R., & Nordic, S. N. (2012). Student’s Saving Attitude: Does parents’ background matter? International Journal of Trade, Economics and Finance, 3(6), 479.

Subhani, M.I., S.A., Hasan & A., Osman. (2011). Marketing is all about Taking Money from Customers (An Application of Tobi Model). International Research Journal of Finance and Economics. Issue 81: 30-37.

Ulkumen, Gulden, Manoj Thomas, and Vicki G. Morwitz (2008), ‘Will I spend more in 12 month or a year? The Effect of Ease of Estimations and Confidence on Budget Estimates, “Journal of Consumer Research, 35(August), 245-56,

Webley, P. & Nyhus, E . K. (2005). Parents’ influence on children s’ future orientation and saving. Journal of Economics Phychology, 27(1), 140-164.doi:10 1016/joep.2005.06.016.

 

Appendix II: QUESTIONNAIRE

 

AN INTERVIEWER ADMINISTERED QUESTIONNAIRE FOR ASSESSING THE FACTORS INFLUENCING THE SAVING AND SPENDING BEHAVIOUR OF YOUTH 18 – 35 YEARS OF BWEYALE KIRYANDONGO DISTRICT

Date ………………..

Dear Respondent;

 

I am FULAL OLIVIA a student of PRINCETON UNIVERSITY attending a one-year course in GLOBAL HISTORY 

I am conducting a study about the above mentioned topic for academic purposes. Your information will be confidential and your name will not be recorded anywhere during this process. I therefore humbly request you to participate by responding honestly to the questions asked.

            Note: You are free to opt out.

Questionnaire number………………..

                                            

Thank you for your time

 

PART A: Social demographic data

 

  1. Age of respondents
  • 18 years
  • 19-20 year
  • 21-22 years
  • 23-24 years
  • 25

 

  1. Gender
  • Male
  • Female
  1. Education level
  • Never went to school
  • Primary
  • Secondary

Part A: methods used to save

What method do you use to save your money?

  1. I have a bank account
  2. I am in a SACO
  3. Am insured by an insurance company
  4. I don’t have savings

Part B: Do your friends influence purchasing decisions?

  • Yes
  • No

If yes how?

  • Do you lend money to your friend
  • Do you borrow money from your friends
  • Do your friends encourage you to spend

Part C; Financial literacy

  1. Do you think saving money is important for the future
  2. Have you been taught or researched about the importance of saving money
  3. Do you think planning your days and monthly expenses is important
  4. Is it important to do extra work to save more or to be able to spend more s

Part D: What factors influence you to spend?

  1. Advertising
  2. Celebrity endorsement
  3. I spend when I feel like
  4. Product labelling

Part E: Do you maintain a budget for your monthly expenditure?

  1. Yes
  2. No

If yes how much (1$= 3500shs)

  • 20,000 – 50000 (6-14$)
  • 60000 – 100,000 (17-29$)
  • Above 100,000 (above 29$)

Part F; what do you spend your money on?

  1. Entertainment
  2. Lifestyle
  3. Travelling
  4. Am not sure

Thank you for your time once again and have a blessed day

 

 

 

 

 

 

Fulal Olivia

Leave a Reply

Your email address will not be published. Required fields are marked *