Determinants of household saving behavior: a special reference in Vellavely divisional secretariat division of Batticaloa district

Abstract

Household saving is the source of investment and is considered as an important factor in economic growth. The main objective of this study is to explore important determinants of household saving behavior in Vellavely Divisional Secretariat Division of Batticaloa district. Household saving behavior depend on demographic variable, financial literacy and self – control. The data for this study collected through using the statistical techniques of univariate analysis, cross tabulation techniques, correlation and regression analysis, chi –square test and hypothesis test from 100 samples. The results of the study showed that determinants, of household saving behavior in Vellavely Divisional Secretariat Division of Batticaloa . As well as each of the variables of financial literacy and self – control in high level and these two variables have strong positive relationship with household. According to chi – square test found significant relationship between demographic factors and household saving behavior. However, the study recommends that the government can implement appropriate policies in order to increase the income level of the people and to reduce their expenditures in such a manner household saving can be encouraged.