Determinates of Youth Saving Habit in Kembeta Timbaro Zone: Case of Doyogena Woredad

Abstract

Most youths have low rate of saving behavior, so that improving saving behavior is a primary goal for people living in this part of the world. Improving saving behavior of individuals is given attention to look at a variety of savings services used by customer in the community. Improving this depends not only on attending of government provider but also on appropriate execution of recommending components of saving in household of the community and institutions or sectors. The objective of the study is to assess the saving habits of the youths (those in the age range of 18 to 30) and associated factors that determine the saving behavior of these youths in Doyogena Woreda. Both descriptive and econometrics methods used anddata from questionnaire were analyzed using SPSS and presented accordingly.  The study found that there is a low saving behavior of the youths in Doyogena Woreda and they have a poor awareness of the financial services and packages. The factors determining the low saving behavior of the youths were the low financial literacy of the youths, the less parental socialization regarding saving the money, peer influence and less self-control practices of the respondents. The researcher recommended that it would be better if they get financial literacy form financial institutions and multimedia to alleviate their saving behavior. It would be much better if they control themselves towards managing the money they have and avoid bad temper. Good interaction between youths and their parents was recommended.

Keywords: Saving behavior, peer influence, financial literacy, and linear regression.

DOI: 10.7176/JAAS/56-03

Publication date:June 30^th 2019