Analysis of the Influence of Income, Lifestyle and Financial Literacy on Saving Interest ( Case Study on Students of Universitas Pembangunan Panca Budi Medan )

Abstract

In the digital era, saving behavior is crucial for financial well-being, but the financial literacy gap poses challenges in fostering students' interest in saving. This study aims to analyze the influence of income, lifestyle, and financial literacy on students' interest in saving at Panca Budi University, Medan, both partially and simultaneously. The research approach uses an associative quantitative method. The study population included all 307 students in the 2022 Management study program, and using the Slovin formula with a 10% error rate, 75 students were selected as samples. Primary data were obtained by distributing questionnaires using a Likert Scale with a value range of 1-5. The collected data were then analyzed using multiple linear regression with the help of SPSS version 27 software, after meeting the prerequisites for validity, reliability, and classical assumption tests. The results of the study prove that: 1). Income has a positive and significant effect on Interest in Saving, 2). Lifestyle has a positive and significant effect on Interest in Saving, 3). Financial Literacy has a positive and significant effect on Interest in Saving. Simultaneously, the three independent variables significantly influenced savings interest, with a calculated F-value of 142.607 (p = 0.001). This model has a strong predictive power of 85.2% (Adjusted R² = 0.852). Meanwhile, 14.8% of the variation in savings interest was influenced by other factors not included in this research model. These results indicate that besides income, lifestyle, and financial literacy, there are still other variables that influence savings interest.