How young people cope in times of economic uncertainty: A survey study on the determinants of personal saving and consumption intention among young adults

Sammanfattning: With the rise of inflation in Sweden, daily economic decisions, including how to earn money, how much and what to save and consume, as well as how to protect against unforeseen expenses, have become even more challenging. Unlike older peers, coping in economic uncertainty will become a first-hand experience for young adults. This thesis investigates what factors influence young people's saving and consumption intention in the current economic condition. A quantitative study was conducted using a survey targeting Swedish young adults between the ages 18-38. The respondents were collected through a self-completion questionnaire distributed mainly physically at campuses but also through mail to students at our school. The results indicate that Generation Y has a less negative view on the economy one year from now compared to the present economic situation. Since it was found that a perceived good future economic situation is negatively related to saving intention, we may expect young adults to consume more within a year. Additionally, we found that attitude and perceived behavioral control were the two strongest explanatory factors for the saving intention in times of economic worries. Generation Y are super connected and frequent users of social media, but subjective norm did not affect Swedish young adults' intention to save. Based on the findings, implications, and suggestions for future research are presented.