| dc.description.abstract | The purpose of this study was to find out the factors that affect household savings in rural areas of Uganda, a case study of Rwampara district. The objectives of the study were to assess the effect of demographic factors such as gender, age, and family size on household savings, as well to assess the effect of socio-economic factors on household savings in rural areas.
The study is based on a random survey conducted among 110 households in TC in Rwampara district. The questionnaire was research administered. The dependent variables were levels of current total savings per household (<50,000/=, 50,000-100,000/= and >100,000) and the dichotomized into savings below 100,000/= or 100,000/= and above. Data were analysed in Stata using proportions and frequencies, and means. Bivariate analysis used logistic regression and Chi-square test statistic.
A total of 110 households participated in the survey, and most of the respondents were men (62%).The findings show that the odds of a household having total savings of at least UGX 100,000 increases with the age of the household head (p-value = 0.0087). The odds of having savings of at least UGX 100,000 significantly increased with education level of the household head, farm land size, and the income levels. However, the odds of having savings reduced with increasing family size and consumption level.
On the other hand, it was noted that that gender of the household head has no effect on household savings.
The study recommends that government should discourage early marriages as younger household heads are less likely to save more. More so, the government should invest highly in education because more educated household heads are more likely to save more. This could be because of the diverse knowledge they possess on the importance of saving as well, their possibilities of earning more income. In addition, the study recommends that family planning should be encouraged so as to reduce on the family sizes and dependency ratio. This will increase the likelihood of households to save. | en_US |
