Investigating the Factors Influencing the Personal Saving’s Behaviour

Abstract

This study aimed to investigate the factors influencing personal savings behavior, focusing on the independent variables of financial literacy, economic conditions, and cultural factors. The research employed a snowball sampling method, with a sample size of 200 participants through structured questionnaire.The Correlation and regression analyses were conducted to examine the relationships between the independent variables and the dependent variable, personal savings behavior. Positive correlations and significant regression coefficients were found in the data, suggesting that increasing personal savings behavior was correlated with both good economic conditions and better levels of financial literacy. Notably, financial literacy exhibited a stronger influence on personal savings behavior compared to economic conditions. However, the impact of cultural factors on personal savings behavior was relatively weaker. The findings underscore the importance of financial education and stable economic environments in promoting positive savings habits among individuals. Furthermore, the study highlights the potential benefits of tailoring interventions and policies to address cultural norms and attitudes that may hinder or promote personal savings behavior. Notwithstanding the drawbacks of the snowball sampling method, the study offers insightful information about the intricate interactions among variables influencing people’s inclination to save. To further our understanding of this important component of financial well-being, future research may look at more variables, use bigger and more representative samples, and examine possible interactions among the independent variables.