Savings among the Youth in the Banking Sector: A Case Study of Standard Chartered Bank Kenya Limited

A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of the study was to investigate savings among the youth in the banking sector in Kenya. The study sought to determine the savings options available to the youth, challenges they face in savings and the measures that can be implemented to solve these challenges. A descriptive research design was adopted on a sample of 60 employees of Standard Charted bank that included 6 from middle level management and 54 from junior entry level employees. The descriptive statistics used included frequencies, means, standard deviations and cross tabulation. These measures were used to assess, youth saving habits as concerning frequencies, consistency, and amounts. Comparisons on frequency of savings and amounts in savings was evaluated using cross-tabulation. Conclusions were also drawn from the results obtained using inferential statistics particularly T-tests. To answer the first research question of the study, it was established that the most popularly used saving product is the savings accounts followed by the Chama’s. Bancassurance and Mutual funds were the least popular savings products among the youth. To answer the second research question of the study, it was established that the youth experienced savings challenges and majority agreed that poor spending habits was the most prevalent challenge faced. This was followed by lack of financial discipline then poor savings culture was ranked third. Limited income was ranked last but also emerged as a challenge faced by the youth when it came to saving. To answer the last research question on the methods to mitigate the challenges, the study established that there was need for the youth to be educated on budgeting and this topped the list of the things that are needed to enable the youth and enable them to save better .Provision of financial literacy skills also greatly affected the youth’s ability to save. The main conclusion drawn by the study was that there are many savings options available to the youth in both the formal and informal sector. The study realized relatively poor savings habits among the youth with many of them accepting responsibility for indiscipline in inculcating consistent savings habits. Solutions to the challenged of savings among the youth are sighted satisfying the objective of the study. Young people need to be educated to see a bigger picture of life beyond the consumerism culture. They need education on the impact of failing to save for their future. There is also a need to create employment opportunities for the youth and offer better income packages that can guarantee them the freedom to be in charge of their future live. The study recommended that Banks and other saving facilities like mutual funds and SACCOS need to continually be structured to favor and encompass the efforts of the youth. The challenges surrounding youth savings including income, poor training in savings and cultural implications can be worked around through training of youths to be able to go beyond these challenges and create a bigger picture for their success in establishing a liberating saving culture. The challenges faced by the youth like low income levels and heavy tax burdens ought to be looked into by the Kenyan government. The government needs to create incentives on financial transactions in taxes and loans such that the progress of the youth is guarantee. Efforts in enhancing financial literacy among the youth need to be accomplished through favorable curriculums. Further studies need to be done on this topic of savings encompassing more savings options available other than the ones mentioned in the study. More studies also need to be done to investigate youth savings on a larger group of youths beyond the banking sector