The impact of demographic factors on savings rate in a volatile economy: A case of a High-Density suburb in Harare (2009-2022)

The study was done to identify the effect of demographic factors on the savings rate of individuals in the high-density suburbs of Harare. The study used five different demographics to identify how they affect savings rate, and these include age, income level, gender, dependency ratio and educational qualification. A mixed method approach was used by the study where a semi-structured questionnaire was also used to gather data to 384 participants from various high-density suburbs in Harare. The study used SPSS to analyse the data, and the study finds out that demographic factors do affect individual savings rate except for gender. All other four factors were significant in affecting savings rate of an individual in high-density suburbs. Dependence ratio was found to have a negative effect on savings rate whilst others were positive. The study therefore rejected the null hypothesis which was stated in chapter one that demographic factors have no effect on savings rate. The study therefore recommended that: Banks should promote savings through introducing attractive savings products, Stable Economic Policy, widening access to Saving Products across all the age groups and different demographic individuals, Savings Schemes for Informal Sector and increase financial deepening.