Impact of Financial Literacy on Individual Saving Behavior

Abstract

The knowledge regarding finance is gaining importance day by day; therefore, it has become essential for individuals to get a proper education to enhance their saving behavior. The chief goal of the following study is to understand the impact of financial literacy on individual saving behavior. In the following research, the data was mainly gathered by the managers and employees of the public sector banks who were working there, and the customers of the public sector banks. The sample size in this research was 350, from which the information was taken. The information was collected on the basis of the questionnaire survey that contained a total of 14 questions. The results were formed on the basis of the regression and ANOVA tests that are interpreted with the help of SPSS software. The results have shown that the hypothesis formed in the research has been accepted. In this case, it can be interpreted that monetary literacy has a strong optimistic impact on individual saving behavior. Furthermore, it can be considered as novel research because it has helped the customers of Pakistani public sector banks to recognize the importance of monetary information. The research has also provided different implications to the customers of the public sector banks who always want to save their money and invest it in the right place. This study can help those people who want to save their money and comprehend the worth of financial knowledge.