Determinants of saving behavior: integration of financial literacy, income, and motivation (A study of participants in the SEED 4 Women Program in Malang City)

Abstract

This study investigates the determinants of saving decisions among participants of the SEED 4 Women Program in Malang City, focusing on the roles of financial literacy, income levels, and motivation. The research is driven by the persistent gap in financial literacy and inclusion among low-income women, despite the implementation of various economic empowerment initiatives. Using a quantitative, associative, descriptive approach, the study analyzed a population of 200 participants, with the sample size determined using the Slovin formula with a 10% margin of error. Primary data were collected using a 5-point Likert-scale questionnaire and analyzed using multiple linear regression in SPSS version 26. The empirical results indicate that financial literacy and motivation partially exert a positive and significant influence on saving decisions, whereas income does not demonstrate a statistically significant impact. Conversely, the simultaneous test reveals that all independent variables collectively influence saving behavior. These findings suggest that future researchers should consider expanding the geographical scope or adopting qualitative methodologies to further explore the non-significant correlation between income and saving decisions within this demographic.