Assessment of the demographic and economic factors on household saving in Uganda

Abstract

The general objective of this study was to assess the impact of demographic and economic factors on the level of household saving. The study used secondary data was acquired from Ugandan National Housing Survey UNHS 2019/2020 and this data is available to all stakeholder, a descriptive research design and the study population included 64731 families in Uganda A two-stage stratified sampling design was used. In the first stage, Enumeration Areas (EAs) were drawn from each of the sub-group with Probability Proportional to Size (PPS) while in the second stage, households being the ultimate sampling units were drawn using Systematic Random Sampling (SRS). Datawere analyzed using SPSS version 25. The data analysis included, descriptive and inferential statistics, and findings were presented and tables. Findings revealed that the income, household size, marital status, and gender were the four significant factors that influence the level of household savings in Uganda. By determining what is important for families and Ugandans at large, this current study will help to add to the literature available for household heads in the area saving, and it is expected that the results of this study will help families to explore and get more information and knowledge on how to increase household savings and reduce on the level of consumption. The study recommends that families should relatively reduce on the level of consumption basing on the amount of income they earn, marginal propensity to save should absolutely be more than the marginal propensity to consume. The study also recommends that there should be lessons or orientations given to families on how to have a financial discipline such that they can save for their future or families’ wellbeing and also increase on the disposable income. This study also recommends that families should have a manageable household size that can be looked after without encroaching on the savings of the family due to high consumption and expenditure in the family.