Socio-demographics, behaviour and spending habits of accounting students

Abstract

The literature reveals that have poor spending habits arising from poor budgeting skills and lack financial knowledge, among others. However, it is unclear which individual lifestyles and attitudes influence the students' spending habits. This study, therefore, fills this gap with empirical evidence from accounting students in South Africa. Specifically, the study aims to investigate the existence of relationships between socio-demographic, attitudinal and lifestyle factors on the one hand and students' spending behaviour, on the other. Using an online structured questionnaire, we collected data from 290 accounting students at the University of KwaZulu-Natal in South Africa, which was analysed using descriptive and inferential statistical techniques. The study finds that socio-demographic factors such as students' age and parental income have the greatest influence on students’ spending habits. Students' spending habits were also found to be influenced by attitudinal factors such as confidence in investment decision-making and shopping for necessities. Finally, it was observed that living an extravagant lifestyle, which includes purchasing branded clothing, compulsive shopping, the latest cell phones, and excessive alcohol purchases, were the primary cause of students' poor spending habits. These findings primarily support the social learning theory, implying that parents and/or guardians play an important role in shaping their children's spending habits.

Keywords: {'name': 'Attitudinal factors'}, {'name': 'Lifestyle factors'}, {'name': 'Socio-demographic factors'}, {'name': 'South Africa'}, {'name': 'Spending habits'}, {'name': 'University of KwaZulu-Natal'}

Authors & affiliations

Nolufefe Dlamini
University of KwaZulu-Natal

Harold Ngalawa
University of KwaZulu-Natal

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