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ABSTRACT
In the workplace, it is common to encounter diverse employees spanning various generations, each with unique priorities and needs. This descriptive-correlational study aims to determine why working professionals, when grouped by generation, save and what affects their intention to save and their actual saving behavior. A researcher-developed survey questionnaire was used to gather data from 1 133 working professions. Structural equation modeling was utilized to determine the relationships among the variables. The study differentiated the effects of different factors on their saving behavior considering the generation to which they belong. Results show that working professionals consider savings for emergency needs essential. Savings for basic needs is their priority, but they start to consider saving for retirement as they age. Attitude is the most important factor affecting their intention to save. In contrast, financial literacy does not affect the intention of the Baby Boomers and Gen Z to save, just as social influence does not affect the intention of Gen Z professionals. The study also proved that working professionals do not just intend to save, but they save. Demographic factors of different generations affect the saving behavior of respondents. The study contributes to the existing literature on financial behavior and saving goals and has practical implications to promote positive saving behaviors and enhance financial well-being among all ages. Additionally, policymakers can utilize the findings to design targeted interventions and policies that encourage responsible saving and financial security across generations.
Keywords: saving behavior, saving goal, financial literacy, intention to save, intergenerational study.
Received 21 February 2023 | Revised 22 July 2023 | Accepted 18 August 2023.
1. INTRODUCTION
Savings, as a critical financial behavior, holds the potential to significantly influence economic growth. Recognized as a positive financial practice (OECD, 2016), it serves as a valuable tool for managing unexpected emergencies and can serve as the initial capital for individual investment endeavors. Personal savings increase one's security and peace of mind as it provides a buffer for financial disasters such as job loss, disability, and other financial emergencies like the covid-19 pandemic. It is a dilemma because some people save while others do not.
Saving is usually influenced by several factors. For some, it is for investment purposes targeting a return on investment. For others, saving...