Impact Of Financial Literacy on Saving Behaviour Among Fresh Graduates in Sri Lanka

This examines some of the factors that determine saving behavior among fresh graduates in Sri Lanka, one of the crucial socio-economic cohorts that are going through the higher education-early career life transition. Although literacy among the fresh graduates are moderate, consistent saving practices remain weak during the transition of education to employment. This study was based on the Theory of Planned Behavior and the Social Learning Theory to analyze three main predictors, including financial self-efficacy, peer influence and financial skills, as a way of understanding how these factors influence the saving behavior. A quantitative approach was adopted, and Data were analyzed using correlation and multiple regression techniques. The results indicated that the three variables have a significant influence on saving behavior, but peer influence has the greatest effect, then financial self-efficacy and financial skills. The research comes up with the conclusion that the combined effect of confidence, financial ability and social factors influences saving intentions among Sri Lankan graduates. It also adds to the literature of behavioral finance in emerging economies and provides policy implications to strengthen youth-based financial literacy and saving programs by policymakers, educators, and financial institutions.