Impact of Financial Literacy Factors upon Household Saving Behaviors: The Research Study of Taulka Moro, District Naushehro Feroze, Sindh

Abstract

The economic growth and development are depended upon the saving ability of a country. Saving is a portion of instant income that is ready to be invested. The fundamental factors i.e., investment, employment and production are preceded by accumulated saving and same is regarded as a base of capital stock. National saving comprises-of two components Public and private saving. Household saving is a major and active factor of private saving. Henceforth, this study explores three financial factors of household saving behaviours in Taulka Moro District Naushehro Feroze. Observing the risk exposures from currency and economic ups and downs due to dependency upon external saving, so many researchers have suggested and focused on increasing domestic savings for reducing severity, spreading circle of poverty and stability in developing countries. The household saving behaviors have been analyzed by this research study in Taulka Moro District Naushehro Feroze. Primary data was collected through multistage cluster sampling. Questionnaire was prepared with consistency and reliability towards the objectives. The sample of 397 households collected from selected 18 blocks of study area. Analysis was made through ordinal logistic regression method for finding the significance and the extent of financial literacy factors towards households saving behaviours in Taulka Moro District Naushehro Feroze. That household saving increased in according with house budget assessment and awareness of interest. Male found headed households at majority but saving attitude observed excessive in female respondents, their saving levels are insignificant. However, saving attitude inversely significant towards Household Saving Behaviours (HHSB). Maximum households living in single family system, while the saving ratio of joint families is higher in comparison to neutral families. According to the study findings it is recommended that state or autonomous organizations should launch awareness campaign to discourage lending money on interest base and stimulate people to be the part of profitable ventures by their economic investments. As well as, financial literacy may be provided through unit roots at microeconomic levels.