How Socio-Economic Factors Influence Household Saving Patterns: Insights from Faisalabad, Pakistan

Abstract : Saving is vital at both micro and macro levels, at the micro level it secures the future of individuals and at a macro level, it increases the level of investment which increases the level of the country’s economic growth. This study examined the impacts of socio-economic factors on household saving behaviour in Faisalabad Pakistan. Cross-sectional data was collected at the district level from 200 respondents from rural and urban areas of Faisalabad. A stratified random sampling technique was used for data collection. Household saving were used as the dependent variable and income, age, square of age, dependency ratio, marital status, employment status, level of education, wealth and liability were used as independent variables and regression was used for data analysis. The results of this study revealed that income and employment level significantly and directly impact household savings. Dependency ratio, marital status, level of education, wealth and liability have inverse and significant impact on household level of saving.