Factors Affecting Rural Household Saving (In Case of Wolayita Zone Ofa Woreda)

Abstract

Saving is considered as a important variables in the theory of economic growth determining, both individual and national wellbeing. However, saving in Ethiopia in rural is areas is very low and little as known empirically about its patterns and factors affecting .Therefore , this study try to assess the saving behavior among rural household in the study area  using  survey data gathered from 30 sample household heads. The study was aimed to analyze the main factor that affect rural household saving .Both primary and secondary date  used for this study, primary data was collected from rural households using interview, questionnaire from farmers by using simple random sampling method. The secondary data was collected from different source like research report, books, magazines etc.The data were analyzed using both descriptive and inferential analysis. The result of the study shows there are different factors that affect rural household saving attitudes in study area; Such as  land size of household, income level of household, marital status of household, education level of household, occupation of household, habit of drinking alcohol and some other were found to have significant influence on the amount of household saving the result of this study shows that rural household saves low proportion of their income due to the above factors so for the law level saving of rural household the responsible bodies should give attention.