A LOGISTIC REGRESSION ANALYSIS OF FACTORS AFFECTING THE SPENDING BEHAVIOR OF MAEJO UNIVERSITY STUDENTS, CHIANGMAI PROVINCE

Abstract

          The Bank of Thailand's study on the development of Household Debt (HHD) provides insight into Thais' borrowing behavior. More than 58% of Thais start accruing debt as soon as they join the job. Notably, inadequate precautionary savings are present in almost 62% of Thai households. If an incident results in a 20% or greater drop in income, these households would find it difficult to pay off debt. Individually,                                     the consequences lead to wealth loss and unstable finances, which in turn cause a host of societal issues. This research aims to study factors influencing spending behavior (SB), Financial Knowledge (FK), and Financial Attitude (FA) of students at Maejo University (MJU), Chiang Mai Province. The data was collected from 400 MJU students through a questionnaire and analyzed by using percentages and Binary Logistic (BL) Regression Analysis. The research findings indicated that the majority of students are female,                            20- years- old, in their first year of the Business Administration faculty, do not borrow money from the Student Loan Fund (SLF), have never received scholarships, receive income from parents, and live with both parents. The research revealed that FK, FA, and SB are at a good level. Further analysis using BL Regression showed that factors related to FK and FA influence the SB of MJU students. Specifically, the Odds Ratio for FK is 0.40, indicating that students with poor FK are less likely to have good SB by more than 0.40 compared to students with good FK. Similarly, the Odds Ratio for FAs is 0.076, suggesting that students with poor FA are less likely to have good SB by more than 0.076 compared to students with good FA at 0.05 significant level. The model's suitability was tested by using the Hosmer-Lemeshow test and found to be appropriate.