A Ringgit Saved Is a Ringgit Earned: Saving Habits among Malaysian Cadets

Abstract

Saving money has an important role in both individual lives and economic prosperity. It offers individuals an escape from life’s uncertainties and encourages investment, which could indirectly contribute to the economic progress of a nation. This study investigates the factors that influence the saving habits of Malaysian military cadets. The study focuses on the impact of parental socialization, peer influence, financial literacy, and self-control on saving habits. Adopting a positivist paradigm, the research design was drawn from a survey of 400 military cadets studying at the National Defense University of Malaysia. The data was analyzed using multiple regression analysis. The results reveal substantial correlations between the variables except for financial literacy; hence, all of the proposed hypotheses are supported except the hypothesis related to financial literacy. Both the life cycle theory and the theory of planned behavior are supported by the findings. This study provides valuable information about the saving habits of military cadets and soldiers and the importance of savings plans.

Keywords

• saving habits
• parental socialization
• peer influence
• financial literacy
• self-control
• military