Factors influence individual saving among generation Y: a case study in Wilayah Persekutuan Kuala Lumpur / Syakirah Husaini

One of the avenues to boost national saving is by encouraging individuals to increase personal saving. The purpose for this study is to identify the factors that influence individual saving. The factors, in particularly, financial literacy, social influence, saving behavior and risk-taking behavior have been test in this study. Saving will not only benefits an individual, but also the entire nation as it provides the base for long-term investments. For positive saver can contribute towards economic growth. As we know, our country itself is facing deficit in which the expenditures are more than income. Therefore, saving can acts as hedge for nation against economic downturns and financial crisis. In addition to this, financial literacy, saving behavior, social influence, and risk-taking behavior also play important roles in individual saving. Although financial literacy is frequently discussed in the national arena, and also been relates with saving, there is no clear definition of financial literacy in which this ambiguity has led to multiple definitions. According to Mason, et. al (2000), financial literacy can be best defined as ''an individual's ability to obtain, understand and evaluate the relevant information necessary to make decisions with an awareness of the likely financial consequences". Therefore, by implementing more financial educational programmed, thus, it can help to boost individual's financial literacy and enable them to make financial plans for future, and choose the most appropriate financial instrument that will help them to achieve their financial goals.