An Assessment of Saving Behavior in the Religious Education Institution

Abstract

The speed of a country’s economic growth depends on its ability to save; a higher level of savings will encourage investment and stimulate economic growth. Millennials must understand the meaning of saving and have an ability to independently manage their money. This article is a preliminary study whose purpose is to determine the financial knowledge, self-control, and religious beliefs that influence saving behavior among students who are in Millennial-Vertical Generations. This article describes a new idea with respondents from Islamic Education Institutions. The research method used is explanatory and examines the relationship between the hypothesized variables. The population in this study is 2,509 students in the Darunnajah Islamic Boarding School in South Jakarta, while the sample used the Slovin formula of 345 respondents. Data collection used primary data through the distribution of questionnaires. The data analysis technique used is the path analysis method, which measures the direct and indirect effects between variables. The hypothesis testing is done by comparing t-statistics with t-table, which is equal to 2.594 for n=268, or comparing P values with a significance level (0.05).The results of this study show the positive influence financial knowledge has on saving behavior; however, self-control has a negative influence on saving behavior and a positive influence on religious beliefs against saving behavior. This study recommends increasing the number of variables that play an important role in student saving behavior and expands the number of research objects to be compared.