Influence of saving and credit co-operative organisations and village savings and loan associations on the saving behaviour of households in Eastern Uganda (evidence from the Finscope Survey Uganda 2023).

Abstract

Saving is important for improving household financial security and helping individuals meet future financial needs. This study examined saving behaviour among respondents, with particular focus on participation in SACCOs and VSLAs and selected socio-demographic factors. The study used data from the Fin Scope dataset. The analysis considered participation in SACCOs and VSLAs, gender, age, education level, residence, and occupation in relation to saving status. Descriptive statistics were used to summarise the characteristics of the respondents, while chi-square tests were used to examine associations between categorical variables and saving status. An independent samples t-test and Mann-Whitney test were also used to examine differences in the amount saved. Multivariable logistic regression was used to assess factors associated with saving while controlling for other variables. The findings showed that saving was common among the respondents. However, the factors examined did not show a significant relationship with saving status. Gender, age, education level, residence, occupation, and participation in SACCOs or VSLAs did not significantly explain differences in saving behaviour. The findings suggest that saving behaviour may be influenced by other factors that were not examined in the study, such as income, household expenses, financial literacy, access to financial services, and other economic conditions. The study recommends strengthening financial education and making saving services more accessible and flexible to different groups of people. SACCOs, VSLAs, and other financial service providers should continue encouraging regular saving and provide services that meet the needs of people with different income levels. Future studies should examine other economic and financial factors that may better explain saving behaviour.