+44-7897-074717Fikadu Getachew Mideksa
This research aimed to investigate the determinants of household saving behavior in Bishoftu town, Oromia region. A Survey design was chosen for this research, utilizing both primary and secondary sources of data. A simple random sampling technique was employed to select 65 respondents. The study examined the influence of demographic characteristics such as age, sex, family size, and marital status on saving patterns. Additionally, correlation analysis and multiple regression models were used to explore the relationships between income, consumption, education, age, marital status, sex, occupation, and savings. Based on the discussion part there are factors which describe the demographic characteristics of the Households. Among this determinants some of them are significantly affect the saving patterns of Households. These demographic characteristics are; age, sex, family size and marital status but family size is a significant determinant variable. The multiple regression models revealed that approximately 69% of the explanatory variables, obtained from the final regressed value of R-square=0.697, explain household saving behavior. The remaining 31% are likely influenced by unseen factors. The analysis confirmed a negative relationship between family size and savings (p = 0.018), as well as between consumption and savings (p = 0.002). On the other hand, income exhibited a highly positive influence on savings (p < 0.001). Factors such as education, age, marital status, sex, and occupation did not have a statistically significant impact on saving behavior in this study. However, the research highlighted the low saving patterns observed in the communities, which were attributed to low occupational status, low income, and high consumption levels. Constraints affecting household saving behavior included limited access to saving and credit institutions, low awareness of saving patterns, inadequate educational opportunities, low community income levels, and neglect of health status.
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