Determinants of Household Saving Behavior in Addis Ababa: The Case of Yeka Sub-city
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Date
2023-05-06
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A.A.U.
Abstract
This study aims to analyze the basic determinants of household saving behavior in the case of Yeka sub city in Addis Ababa. 399 sampled respondents were chosen in order to address the research objective. The necessary sample size was obtained using the convenience sampling technique. The study used descriptive and explanatory research design. Utilizing frequency, correlation, and multiple linear regression analysis, all outputs were reported. The outcome suggests that the majority of households have a better understanding of how to spend their money and have a very clear understanding of their economic requirements during retirement. Family size and household saving behavior had a negative and significant relationship, and there is positive and significant relation between income of household and household saving behavior. There is a positive and significant relationship between saving motive and household saving behavior, and between financial institution accessibility and household saving behavior. There is also a positive and significant relationship between financial knowledge and household saving behavior, and between saving awareness and household saving behavior. But age and occupation of respondent has no significant relationship with household saving behavior in this study. The study recommended that since saving awareness and financial knowledge have the most positive and significant relationship with household saving, policymakers need to improve quality of living of the households by enhancing the awareness of households about working habits in engaging in different types of jobs to increase their incomes. Policymakers also need to focus on enhancing the trainings about family planning so as to improve household saving status.
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Household saving behavior, saving awareness, financial knowledge, accessibility, saving motive