The Savings Motives: With Special Reference to Households in Kalutara District

Abstract

Abstract

The household saving is a decision which is taken by the people to postpone their consumption of current income. Savings can be considered as one of the crucial tools which households utilized to accomplish their financial expectations in order to improve their financial wellbeing. There are many ways of accumulating or investing money, which can be identified as the deposits in bank accounts or building society accounts to saving in pensions, save in credit unions, invest in the stock market and many other saving sources. This study is an inspection of saving motives of Sri Lankan household in present economic situation. Briefly it can be explained, the harvest of the research will provid the answer to the question of what is the most significantly affected saving motive which stimulate/ encourage people to save money? And it will be further declared how do these saving motives vary when household characteristics differ? As a conclusion it can be stated that this study is seeking answers for why do people save money in a broader sense (Research Problem). And the answer for, of what is the most significantly affected saving motive to stimulate people, for savings? The main purpose of this paper is to examine the most significant savings motive among households in Kalutara District. Data were collected through questionnaires by using hundred respondents. The factor analysis is explored to examine, what is the most significant savings motive among pre-determined savings motives of bequest, precautionary and life cycle using SPSS 17. It has been identified the most significant savings motive of households in Kalutara district is the precautionary savings motive

Keywords: Savings Behavior, Savings Motives, Factor Analysis