Reference no: EM132859214

According to Chia, et al. (2012), in recent years, there is a fast-growing trend in global economics. The financial management of the people varies around the world and the most common one is saving (Chai, Chia et.al, 2012). According to Keynesian economics "Saving" is the amount left over when the cost of a person's consumer's expenditures is subtracted from the amount of disposable income that he/she earns in a given period of time. Saving plays an important role in economic growth and development.

• As stated in the past studies insufficient saving is usually caused by wrong prediction in spending (Ulkumen and Morwitz, 2008), over-emphasis on the present rather than the future (Lynch and Zauberman, 2006), and lack of saving awareness.
• In the study conducted by Chai, et.al (2012), the result indicated that Malaysia's saving rate has declined in recent years. It was also stated in the study of Chai, et.al (2012) that as per World Bank data, the Gross Domestic saving of Malaysia has been oscillating between 42 percent and 43 percent from the year 1999 to 2008 but falls sharply to 36 percent in 2009.
• A similar situation exists in Malaysia where the study of Sabri et. al. (2010) established that Malaysian college students had low levels of financial literacy and that their literacy was related to their ethnicity, childhood consumer experience, and whether they attended private versus public institutions.
• In the Philippines, the personal saving rates increased to 63 percent in April of 2014 from 56 % in March 2014. The personal saving rates averaged 6.23 % from 1982 until 2014, reaching an all-time high of 14.50 % in January of 1991 and a record low of 41 % in September 2013. Personal savings in the Philippines is reported by the BSP (Bangko Sentral ng Pilipinas).
• In the newsroom of Citibank, 2013, it was stated that Filipinos are now more conscious about planning their finances; more than 9 out of 10 said they create a budget on a monthly basis, and 65% acknowledged the importance of sticking to their budget.
• The researchers will conduct a preliminary investigation about the factors affecting the saving behavior of the Management Accounting students of Saint Louis University during their vacant period. By the use of a survey, the respondents will answer few questions that assessed their behavior on the different factors that affect their savings.
• Because of these, this study will be conducted to determine the factors affecting the saving behavior of Management Accounting students of Saint Louis University. Understanding whether on how different factors may influence the respondents on their saving behavior. This will be a basis for determining the considered benefits and hindrances on their savings that will be useful in designing an effective recommendation to improved the personal finance of Management Accounting students of Saint Louis University.

Question 1: How can establish more the reason why conduct such study?

Question 2: What is the main concern of the study?

Question 3: Factors affecting the saving behavior and saving behavior?