Youth Savings Habit.
1) Ali, S. A., & Theyazn, H. H. A. (2022) states, In today’s world, young people require financial awareness and skills to enhance their decision-making. Unfortunately, there is a noted trend among the younger generation to place less emphasis on saving habits, resulting in financial dependencies on families, society, and government support. Societies with high financial literacy, however, produce individuals capable of making sound decisions. Financial literacy is defined as the ability to gather and process economic information for wise financial decisions, enabling individuals to manage money efficiently, make appropriate investments, and take advantage of financial products and services. Notably, a 2014 financial literacy report revealed a global gap, with only 33% of adults being financially literate, showing gender disparities of 35% for men and 30% for women.
The importance of financial literacy is further underscored by an example from the Arab region, particularly in Saudi Arabia, where financial literacy is reported to be low, with implications on saving behavior and investment planning. Financial literacy plays a crucial role in improving individuals’ well-being and saving behavior, particularly among the youth. The study also highlights the positive relationship between parental influence and financial literacy, emphasizing the role of parents as primary sources of financial knowledge. Additionally, peers contribute significantly to shaping financial behavior, serving as role models and influencing attitudes towards money. Developing financial literacy encourages effective financial management, fostering a culture of saving and ultimately leading to improved quality of life for young individuals.
2) Deng, T., et al studies focuses on utilizing sentiment and topics in Facebook messages to predict substance usage levels (alcohol and marijuana) among homeless youth (YEH). Positive FB conversations are associated with lower likelihood of high marijuana usage. Additionally, finance-related topics in conversations correlate with higher alcohol and marijuana usage.
Identifying high-risk YEH for substance use through social media analysis is crucial but challenging due to their hard-to-reach nature. The study suggests cues like conversation topics for proactive intervention. However, privacy concerns must be considered Descriptive analysis of YEH’s social media conversations contributes to understanding their mental well-being.
Extends literature on the link between social media behavior and substance usage, confirming patterns in YEH.
Builds a model predicting substance use behavior using sentiment and topics, aiding proactive intervention. The study supports the feasibility of using social media data for health behavior analysis
The study emphasizes the role of social media analytics in informing public health professionals and developing policies. By analyzing digital trace data from social media, particularly in hard-to-reach populations like YEH, insights into sentiment, opinions, and substance use can be gained. The study provides an alternative tool for public health surveillance and substance prevention applications, acknowledging the limitations of traditional survey methods.
3) Falk, J., & Karamcheva, et al, paper utilizes administrative panel data on federal civilian workers to investigate the impact of employer matching and plan default options on Thrift Savings Plan (TSP) savings outcomes. Leveraging exogenous variations from policy changes – the availability of employer matching since 1983 and the introduction of automatic enrollment since July 2010 – the study finds that employer matching led to a 22 percentage point increase in employee participation rates, while automatic enrollment raised participation rates by 37 percentage points at 0–4 months of tenure and 13 percentage points at 41–52 months. The study identifies varying effects on contribution rates, portfolio allocations, and intergroup variance in TSP balance accumulations, shedding light on the nuanced impact of these policies on federal employees’ saving behavior. Additionally, it notes differences in federal workers’ response to defaults compared to private-sector workers, indicating potential influences from age, education, and job tenure.pn
4) Lozza, E., Jarach, and et al explores the controversial impact of pocket money on the behaviors and lifestyles of adolescents. Previous studies present conflicting findings, with some suggesting that allowances contribute to the development of critical financial capabilities and responsible behaviors, while others argue that allowances lead to financial dependence rather than capability. The research examines different money allowance schemes, considering factors such as the amount of weekly expenses, the frequency of pocket money, and the total amount provided, in relation to five risky behaviors among adolescents: smoking, alcohol consumption, binge drinking, drug use, and gambling. Notably, this study distinguishes itself by investigating the specific terms and conditions under which parents provide allowances, offering valuable insights into the differential effects of various allowance schemes on adolescent behavior.
In light of the diverse evidence surrounding pocket money and its impact on risky activities, the study’s multiple logistic regression models reveal that higher financial means are more likely to induce adolescents to adopt risky lifestyles, including excessive alcohol consumption, smoking, and gambling. The results highlight the active role of pocket money and economic availability in shaping adolescent behaviors, corroborating previous studies in the health sector. Importantly, this research contributes by unveiling the differential effects of various allowance payment schemes on risky behaviors, emphasizing the need for a nuanced understanding of how financial support influences adolescent lifestyles.
5) McCormick, M. H. (2009) states the definitions of financial literacy, education, and capability, offering insights from various scholars. Financial capability, as proposed by Johnson and Sherraden, goes beyond education to include access to financial services. The multifaceted nature of financial education is highlighted by Hogarth, covering basic knowledge, understanding money management, and applying financial knowledge. The discussion extends to youth financial literacy, emphasizing its role in empowering individuals to make informed decisions.
The text then examines the effectiveness of financial education, revealing the lack of widely accepted standards. It emphasizes participant-defined goals as crucial for impactful programs. Shifting to program design, the passage stresses the importance of relevance, motivation, and early education. It challenges conventional K-12 models, advocating for customized financial education processes. The passage cites the National Council on Economic Education’s survey, outlining the current state of financial education in schools.
Finally, the text concludes by presenting promising practices, including the timing of financial education, teacher training, and the incorporation of savings tools. This provides a comprehensive overview of the complexities and potential strategies in the realm of youth financial literacy.
6) Muat, S., Mahdzan, and et al discusses the financial challenges faced by young adults during the transitional years of 18-26, emphasizing factors such as student debt, lack of financial information, and low financial literacy. The study draws attention to the impact of economic downturns globally, particularly affecting vulnerable populations in the Asia-Pacific region. The financial difficulties experienced by young adults in the US and Asia-Pacific are highlighted, indicating a need for enhanced financial capability.
The passage also references a systematic literature review conducted to understand the factors contributing to the development of young adults’ financial capabilities. Six themes emerged from the review, including financial knowledge/financial literacy, financial behavior, financial attitude, financial inclusion, financial socialization, and demographic characteristics. These themes encompass various sub-themes, shedding light on different aspects of financial capability.
The study emphasizes the importance of financial capability in navigating consumer financial challenges and points out the critical developmental challenge for young adults to achieve financial success. Financial capability is defined as a multidimensional concept, combining knowledge, skills, attitudes, and behaviors necessary for sound financial decision-making. The passage underlines the need for holistic financial education, accessible financial services, and positive family financial socialization to address the intricate nature of young adults’ financial capabilities.
The passage further discusses the disparities in financial literacy scores in the Asia-Pacific region, particularly in South Asia, emphasizing the significance of enhancing financial capabilities to make sound financial decisions. The study aims to contribute to existing knowledge through its systematic literature review, focusing on the differences in financial capability determinants between the US and the Asia-Pacific region.
In summary, the passage delves into the complexities of young adults’ financial challenges, provides insights from a systematic literature review, and emphasizes the multifaceted nature of financial capability as a key factor in addressing these challenges.
7) Obianagwa, C. E., and et al, analyzed cybercrime, particularly in the form of internet fraud known as “Yahoo Yahoo,” has become a significant issue in Nigeria, dominated by the youth. The United Nations defines cybercrime as any illegal behavior using electronic operations targeting computer systems and data. The rise of the internet, computers, and mobile phones in Nigeria since the early 2000s has led to a surge in organized cybercrime.
The “Yahoo business,” originating in the 1990s, has evolved into a more dangerous and sophisticated state, with fraudsters openly displaying wealth without fear of legal repercussions. Various forms of cybercrimes such as fraudulent emails, identity theft, hacking, and ATM spoofing are prevalent, making Nigeria a hotspot for global internet crime.
The connection between rising cybercrime and youth unemployment is evident. With a significant youth population facing high unemployment rates, many turn to cybercrime as a means of quick wealth acquisition. Nigeria’s youth, constituting 70% of the population, face alienation and marginalization in the absence of substantial government support and policies.
The study highlights the twin challenges of youth bulge and unemployment in Nigeria, emphasizing the vulnerability of the youth population. High unemployment rates, particularly among the youth, contribute to the prevalence of cybercrime. The study suggests that neglect and lack of investment in the youth demographic could lead to demographic disaster rather than dividend.
As a response to government neglect, the youth have become drivers of modern-day internet fraud in Nigeria. The economic downturn and lack of opportunities push young people, especially undergraduates and high school leavers, into various criminal activities, including cybercrime. The study aims to explore the nexus between youth unemployment and cybercrime in the context of Nigeria’s burgeoning youth population.
The study calls attention to the urgent need for social and economic investments in Nigeria’s youth to address the rising cases of cybercrime. It emphasizes the potential demographic disaster if the current challenges of unemployment and poverty among the youth are not adequately addressed. The findings highlight the importance of comprehensive measures and government intervention to harness the potential of the youth population and steer them away from engaging in cybercrime activities.
8) Ramli, Z., Henry Borromeo, et al, underscores the growing issue of financial fragility among today’s youth, attributing it to lifestyle changes that have rendered them vulnerable. Despite previous research findings, the study reveals weak associations between financial knowledge, behavior, and fragility. Notably, financial knowledge factors are surprisingly found to be nonpredictors of financial fragility, challenging earlier assumptions. The positive impact of good financial knowledge on reducing indebtedness behavior is highlighted, emphasizing the importance of disciplined financial practices. The need for improved spending knowledge, particularly in the era of online shopping, is stressed, urging youth to prioritize needs over wants to avoid financial vulnerability. Additionally, the study emphasizes the strong influence of financial shocks, like unemployment or policy changes, on financial fragility, emphasizing the critical role of savings and diversified investments as tools for resilience.
In conclusion, the study advocates for targeted financial literacy education, directing policymakers, especially the Ministry of Education Malaysia and Bank Negara Malaysia, to introduce financial education early on. Specific recommendations include the formulation of youth-friendly financial policies and credit facilities, with a focus on ensuring monetary policy changes do not adversely affect the financial well-being of young individuals. Acknowledging the study’s limitations, which focused on single youth aged 25 to 34, the passage suggests further research in metropolitan cities and among married youth to capture nuanced financial behaviors and challenges.
9) Sneed, C., and et al, states that financial management is integral to the Family & Consumer Sciences (FCS) Body of Knowledge, where professionals contribute to individual well-being and family strengthening by educating and empowering individuals in sound financial and household resource management. The Money Week curriculum is a targeted initiative designed for first and second-grade elementary students, aligning with National Jump$tart standards and state academic standards. The program focuses on core personal finance concepts, incorporating in-class instruction, read-aloud activities, and changes to the school environment.
Money Week aims to achieve specific objectives, including developing students’ ability to identify the relative value of money, count currency of different denominations, understand the difference between wants and needs, identify ways money can be used, and use a spend, save, share bank for managing money. The curriculum comprises five money lessons for each grade, with an optional extender lesson. Teachers at intervention schools are trained by local FCS Extension agents, and daily newsletters in English and Spanish are sent to caregivers, explaining what students learned and providing practical money tips.
The program also involves local community and business leaders reading money-themed books to students, reinforcing daily lessons. Changes to the school environment, such as a prominent banner, daily money facts on announcements, and a photo booth with a program mascot, further promote the messages of smart money habits. The pilot program conducted in a Title I-designated school yielded positive results, with teachers reporting significant gains in students’ literacy skills, currency counting ability, money management, understanding of wants and needs, and identification of money values. Teachers expressed willingness to implement the program again.
Engaging young learners in financial management aligns with research and serves as a unifying force for FCS professionals. Involvement of financial professionals in read-aloud activities contributes to community excitement and support for programs like Money Week. Such initiatives not only empower young students but also unify FCS professionals as leaders in practical, real-life education with a positive impact on families and individuals.
10) Uy, C., and et al, study delves into the saving behavior of employed professionals, particularly focusing on the generational aspect and the influencing factors. Recognizing savings as a critical financial behavior with potential economic impacts, the research aims to identify saving goals among working professionals across different generations, understand factors affecting their intent to save, and explore how demographic variables moderate the relationship between saving intentions and actual saving behaviors. Anchored on the Theory of Planned Behavior, the study explores the influence of financial literacy, attitudes toward saving, saving goals, and the impact of parents and peers on saving behavior. The findings aim to contribute to policy formulation, financial education enhancement, and a deeper understanding of factors influencing saving behavior among professionals in different age groups.
This study explores the saving goals and behaviors of working professionals across different generations in the Philippines, highlighting the significance of emergency savings and the evolving priorities with age. It identifies the crucial role of saving attitudes, varying impacts of social influence, and the influence of financial literacy on younger generations. Practical recommendations include integrating financial education into the curriculum, organizing seminars, and launching marketing campaigns. The research contributes to financial literature, emphasizing the importance of positive saving attitudes and tailored strategies based on demographic profiles. Policymakers can utilize these insights to design targeted interventions promoting responsible saving. Limitations include the study’s focus on Metro Manila, suggesting replication and conceptual framework improvements for future research, but overall, the study offers practical implications for enhancing financial well-being.
11) Youth saving habits play a crucial role in shaping their financial well-being and future stability. Establishing a savings culture early in life can lead to responsible financial management and increased economic resilience. However, the saving behavior of young individuals is often influenced by various factors, including financial literacy, parental guidance, and societal norms. Encouraging youth to save for both short-term goals and long-term objectives, such as education or emergencies, fosters a sense of financial responsibility. Educational initiatives, mentorship programs, and accessible financial tools can contribute to instilling positive saving habits among the youth, empowering them to navigate financial challenges and build a solid foundation for their economic future.
Youth saving habits not only contribute to individual financial security but also promote broader economic stability. Cultivating a habit of saving early on allows young individuals to develop crucial skills in budgeting, goal setting, and financial planning. Financial institutions and educational systems play a vital role in fostering these habits by providing accessible savings options, imparting financial education, and encouraging responsible money management. Additionally, parental involvement and positive peer influences can significantly impact the formation of sound saving behaviors in the younger generation, ultimately shaping a financially literate and resilient society.
References:
1) Ali, S. A., & Theyazn, H. H. A. (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:https://doi.org/10.3390/su14148780
2) Deng, T., Barman-Adhikari, A., Young, J. L., Dewri, R., & Bender, K. (2023). Substance use and sentiment and topical tendencies: A study using social media conversations of youth experiencing homelessness. Information Technology & People, 36(6), 2515-2542. doi:https://doi.org/10.1108/ITP-12-2020-0860
3) Falk, J., & Karamcheva, N. S. (2023). The impact of an employer match and automatic enrollment on the savings behavior of public-sector workers. Journal of Pension Economics & Finance, 22(1), 38-68. doi:https://doi.org/10.1017/S1474747221000366
4) Lozza, E., Jarach, C. M., Sesini, G., Elena, M., Lugo, A., Santoro, E., . . . HBSC Lombardy, C. 2. (2023). Should I give kids money? the role of pocket money on at-risk behaviors in italian adolescents. Annali Dell’Istituto Superiore Di Sanita, 59(1), 37-42. Retrieved from https://www.proquest.com/scholarly-journals/should-i-give-kids-money-role-pocket-on-at-risk/docview/2802079804/se-2
5) McCormick, M. H. (2009). The effectiveness of youth financial education: A review of the literature. Journal of Financial Counseling and Planning, 20(1), 70-83+. Retrieved from https://www.proquest.com/scholarly-journals/effectiveness-youth-financial-education-review/docview/217755657/se-2
6) Muat, S., Mahdzan, N. S., & Sukor, M. E. A. (2024). What shapes the financial capabilities of young adults in the US and asia-pacific region? A systematic literature review. Humanities & Social Sciences Communications, 11(1), 83. doi:https://doi.org/10.1057/s41599-023-02588-9
7) Obianagwa, C. E., Ngoka, R. O., Gift, U. O., Hayford, E. I., Okpala, J. C., & Ayadiuno, R. U. (2023). Youth unemployment and cybercrime in Nigeria. African Renaissance, 20(2), 177-177–199. doi:https://doi.org/10.31920/2516-5305/2023/20n2a9
8) Ramli, Z., Henry Borromeo, A. N., Sum, S. M., & Abd, H. A. (2022). The impact of financial shock, behavior, and knowledge on the financial fragility of single youth. Sustainability, 14(8), 4836. doi:https://doi.org/10.3390/su14084836
9) Sneed, C., Berry, A., & Hethmon, M. (2023). Money week: Impactful financial education for young learners. Journal of Family and Consumer Sciences, 115(2), 39-42. doi:https://doi.org/10.14307/JFCS115.2.39
10) Uy, C., Manalo, R. A., & Bayona, S. P. (2024). Determinants of saving behavior of working professionals: An intergenerational perspective. Review of Integrative Business and Economics Research, 13(2), 372-390. Retrieved from https://www.proquest.com/scholarly-journals/determinants-saving-behavior-working/docview/2886391395/se-2.
