The aims of this study were to examine the effects of demographic characteristics (gender, marital status, ethnic, age, level of education, income) on saving behavior and to determine factors (demographic variables, financial management practice and financial literacy) affecting the saving behavior among Malaysian employees. A total of 2,242 respondents, from public and private sectors participated in the study. Samples were selected using multistage sampling technique. Data were coded and analyzed using SPSS. T-tests and ANOVA were used for testing differences of demographic characteristics on saving behavior. Hierarchical multiple regressions were executed to determine predictors that had significant effects on savings behavior. Results of the study indicated significant differences of saving behavior according to age, level of education and income. Furthermore, income, age, financial management and financial literacy were found to be the most influential predictors of saving behavior.

Key words: demographic characteristics, gender, marital status, ethnic, age, income, education level, financial literacy, financial management, saving behavior, Malaysian employees, Malaysia