Education and households saving behaviour in Tanzania: An empirical investigation

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University of Dar es Salaam
Household’s saving are an essential constituent of national savings and remains essential to economic growth and poverty alleviation across the world and specifically for many developing countries. Household formal saving help to accumulate capital stocks that lead to increase in investment; consequently leading to economic growth. This study examine education and household saving behaviour in Tanzania with specific aim to; (i) Establish effect of education on household’s saving behaviour in Tanzania; (ii) Establish the effect of other socio-economic and demographic factors on household’s saving behaviour in Tanzania, and (iii)Assess ways in which households in Tanzania saves. The study uses secondary data obtained form Tanzania Fin Scope survey of 2017. A sample of 4348 adults (individuals of 16 years and above) households in draw from the survey. Questionnaires were used to collect households’ information. The study employs Multivariate Probit model to analyse the effects of education as well as the effect of other factor variables on households saving behaviour in Tanzania. The motive of this study is impelled by the fact that there are low levels of literacy as well as low savings in the formal and semi-formal financial institutions. The study results reveal that education level, income, location, access to credit, gender of the households head, formal employment as well as household size influences households saving behaviour in Tanzania. Government should incorporate financial knowledge in the curriculum as well as boosting education levels so as to lower illiteracy level, this will help to increase saving levels in Formal Financial Institutions. (FFIs) and Semi Formal Financial Institutions (SFFIs). Households should participate in income generating activities so as to earn income, this will help raise levels of saving. Also, government should avail more employment opportunities especially in the formal sector in order to raise the levels of savings both FFIs and SFFIs. Government as well as the commercial banks should also strive to increase provision of credit to households so as to raise its accessibility and eventually raise the levels of savings in FFIs and SFFIs. Lastly, households should be encouraged to have lower family size by adopting family planning techniques so as at least to boost level of savings.
Available in print form, East Africana Collection, Dr.Wilbert Chagula Library, (THS EAF HB822.T34K37)
Saving and investment, Economics- Psychological as pits, Households, Tanzania
Kato, E. E. (2020). Education and households saving behaviour in Tanzania: An empirical investigation, Masters dissertation, University of Dar es Salaam, Dar es Salaam.