Saving and Spending

Saving Habits
The word saving is contained broad-based meaning and numerous explanations.Habit has been
viewed differently by various scholars. Habit is regularly repeated behaviour pattern or pattern of
behaviour that is repeated so often that it becomes typical of somebody, although he or she may
be unaware of it (Encarta ,2010). But in today’s generation, young people tend to have
knowledge in saving money. They are more accurate in handling their money. Some students do
not know what saving is. As defined by Bime and Mbanasor, (2011) saving is defined as the part
of disposable income which is not spent on consumption. Moreover, Le et al. (2010) proposed
out of their study that people in poor health status tend to save more than those who are in
average health status in which is also in accordance with the precautionary motive. Thus, this
study examines the saving habit of the respondents. On the other hand, Virani, (2012) stated that
saving is scarifying the current consumption in order to increase the living standard and fulfilling
the daily requirements in future. Saving is an amount of something such as time or money that
you do not need to use or spend. A twin matched study revealed that saving behaviour was
influenced by genetic predispositions and social transmission (Cronqvist & Siegel, 2010).
Moreover, the saving behaviour showed the same direction in results that in children habited
merely as requirements from their parents. Heckman and Hanna (2012) saving behaviour save
as a part of the income that already set aside every month for the future consumption and as their
asset in bank account or other security place. In order to save money, one must be able to
exercise self-control in delaying gratification and resisting the temptation to spend
(Webley,2007). It connects with the research of Esenvalde (2010) that it has provided empirical
evidence that self-control was positively associated with saving behavior. The author claimed
that self-control is a very solidly and uniformly factor used to explain saving behavior.
According to Lim, Sia, and Gan (2011), there is a significant impact of self-control on saving
behavior.
Spending Habits
The spending habit in today’s generation is inevitable habit. The significance of monitoring
and controlling ones spending habit cannot be over emphasize for an individual, including the
youths that have financial motives (Ochei, 2012). Most of them they tend to spend money in order
to satisfied their needs, wants and demands. According to businessdictionary.com, consumer
spending could be defined as goods and services bought by households in the satisfaction of their
needs and wants. In addition, spending is defined as the act of expending and behaviour is defined
as response of an individual to an action. The spending behaviour of students today is rather
different from before leaving a question of what could be the spending factors of students today be.
According to Neill Valentine D’Silva (2008) in his article about college spending habits, Students
are getting more and more into consumerism every day. As a student, one of the most important
things to keep in mind is the amount of money you spend during your study years. Everything
changes because nothing is constant, even the slightest factors of people’s lives will change.
Students who used to live away from their home, there are too much of brand awareness and
increase the chances of students buying things that they do not need leaving mass media a
factor. Spending behaviour is commonly a behaviour affecting the way a person use their money
in order to satisfy their wants and needs without any use of control. The way on how students
manage their own money may become a behaviour that may be a difficult thing to change, for
behaviour had been influenced by what are the surroundings. A spending investigation found that
ones who did not get allowance always spent much more with a card than saving any unspent
money. On the other hand, cash and card were used the same amount in ones who got an
allowance. Also in receiving an allowance, which should be controlled for students by their
parents, might facilitate the development of the monetary competence (Argyle &Furnham,
2013). Brian Honigman in his article How Millennials are Shopping (2013) reported that by
2017, Millennials are hyper-social, continuously connected to social media will have more
spending power than any other generation. This article also mentioned that 84%Millennials
depend on user-generated content has some influenced on what they buy and 51% from the
survey showed that Millennials trust to make purchasing decision based on consumer opinions
on company’s websites rather than recommendations from family and friends.

Saving and Spending

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Saving Habits

exercise self-control in delaying gratification and resisting the temptation to spend

to satisfied their needs, wants and demands. According to businessdictionary.com, consumer

as response of an individual to an action. The spending behaviour of students today is rather

on company’s websites rather than recommendations from family and friends.

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