1.

1 Problem statement

As everyone is aware, saving is an important aspect especially in the modern era we live in
today. We can obviously see the influence but to be more precise the power it has over people.
Not just people in general but the influence it has over people’s perception, position in the social
hierarchy and even influencing the future of not just their own but for their descendants also.
Money also represents power since money can buy goods and services, it can also be used to
acquire importance, domination and control (Lozza & Poli, 2022). This inconsistency may be
due to the importance of saving cannot be underhanded anymore as the action is highly
intertwined with the success rate of funds in people’s future. Hence why the Malaysian
government has conveyed many actions to promote financial literacy. Nevertheless, efforts by
the government are not sufficient as financial literacy among people especially the core target
audience, the students is seen as drastically low. Hence why the study of predictors of saving
intention among youth in Malaysia is done, which is to identify the core factors that affect saving
among youth. However several issues have been faced conducting the research.

The first issue is that the youth tendency towards financial literature is poor. In this sense,
people are unaware of the immense implication of the act of saving in their future. Saving
enhances emotions of stability and peace of mind and offers a financial "backstop" for life's
uncertainties (O’Neil, 2009). Savings can serve as the "seed money" for higher-yielding assets
like stocks, bonds, and mutual funds if an appropriate emergency fund has been developed.
Due to that reason, it shows us why the exposure towards financial literacy is important in
everyone’s daily life as the products of the labor are quite fruitful as people can be more likely to
enjoy life for half of their lives.

Next, another issue in saving intentions is the norm of spending more than you can afford. The
term is called overspending which will always have a negative effect on your budget. Spending
beyond what you can afford and running up costly debt must be limited to lead a healthy
financial life. Spending beyond your means can also distract you from your financial goals (Nair,
2022). In other words, we live in an era where the act of purchasing is becoming more
convenient to some extent that we can even exhaust our spendings without even leaving the
comfort of our homes with the usage of mobile transactions from online shopping. Hence why
people in today’s time spend more than what they can afford which can result in debt that has a
high interest rate, financial stress, and other issues like not being able to pay all of your
obligations on time or save for other, longer-term financial goals (DeMarco,2022).

Based on these issues, financial literacy needs to be taught among the youth so that they are
more knowledgeable in spending their money as well as be more thoughtful of how they save
their money. This can be done via forums, advertisements and many others so that the masses
are more knowledgeable about financial literacy. When this is achieved, people will have a
better understanding of their resources, especially the youth which will snowball and create a
society where people are wary of their spendings.

When this is achieved, we can expect to see a generation where pointless shopping and other
wastage of money will be hindered which will increase the saving intention among youth even
more. Thus, entrusting future generations to be more and more focused on saving since it is
well taught by them within the culture created.