Why do People have the Saving Behavior? A Reference from Sylhet City

  • Mohammad Kamrul Ahsan Metropolitan University
Keywords: factors, Saving Behavior, Save


Saving is the difference in individual’s disposable earnings and its consumption. Saving is the human behavior.  The main aim of this paper is to identify out why people have the saving behavior. A structured questionnaire was used to collect primary data from 232 people from the different parts of Sylhet city in Bangladesh.  Several statistical tools, i.e., Descriptive Statistics, Factors Analysis and Multiple Regression Analysis, have been conducted to find out core cause of the human saving behavior. The researcher has found five core factors for having this human saving behavior, i.e., 1. Have a facility in old age, 2. Have enough social security, 3. Purchase land/house, 4.Dependent persons, and 5. Good profit/interest.


Download data is not yet available.

Author Biography

Mohammad Kamrul Ahsan, Metropolitan University

Senior Lecturer, Department of Business Administration, Metropolitan University, Sylhet, BANGLADESH


Abid, S and Afridi, G.S. (2010). Assessing the Household Saving Pattern of Urban, and Rural Households in District Muzaffarabad, Pakistan Journal of Life and Social Sciences. 8(2). pp- 137-141.

Anastasiadou, S. D. (2011). Reliability and Validity Testing of A New Scale For Measuring Attitudes Toward Learning Statistics With Technology, Act a Didactic a Napocensia. 4. ISSN 2065-1430

Bendig, M., Giesbert, L. & Steiner, S. (2009). Savings, Credit, and Insurance: Household Demand for formal financial services in Rural Ghana, BWPI Working Paper no 76, pp-1-26.

Cortina, J.M. (1993). What is coefficient alpha? An examination of theory and applications, Journal of Applied Psychology, 78, pp-98–104

Dell'Amore, G. (1983). Household Propensity to Save in Arnaldo Mauri (ed.), Mobilization of Household Savings, a Tool for Development, Finafrica, Milan.

Discover. (2016). Three Reasons to Save More Money, [online] Available: https://www.discover.com/online-banking/banking-topics/3-reasons-to-save-more-money/, [Accessed: November 15, 2016]

Fraczek, B. (2011). The factors affecting the level of household savings

and their influence on economy development, 8th International scientific conference financial management of firms and financial institutions, Ostrava VŠB-TU Ostrava, Faculty of economics, finance department 6th – 7th September 2011

Horioka, Ch. & Terada-Hagiwara, A. (2012). The determinants and long-term projections of saving rates in Developing Asia, Japan and the World Economy, 24 (2), pp-128-137.

Kaiser, Η. F. (1960). The application of electronic computers to factors analysis. Educational and Psychological Measurement, 20, pp-141-151.

Kolasa, A. & Liberda, B. (2014). Determinants of saving in Poland: Are they different than in other OECD countries? University of Warsaw, Faculty of Economic Science, Working Paper No. 13/2014 (130)

Manyama, M. M. (2007). Instilling a Culture of Savings in South Africa. An M.Sc. Thesis Presented at Gordon Institute of Business Science, University of Pretoria, South Africa.

Mill's, J. & Recardo, D. (1848). Principles of Political economy with some of their applications to social philosophy. Editions 1-7.

My Money Coach (2016), Ten reasons why you should save money, [online] Available: http://www.mymoneycoach.ca/saving-money/why-save-money, [Accessed: November 10, 2016]

Oxford Dictionaries. (2016). Propensity. [Online] Available: http://www.oxforddictionaries.com/definition/english/propensity; [Accessed: August10, 2016: 10.10PM]

Piggypot. (2016). The Top three Reasons to Save Money. [Online] Available: http://piggypot.com/blog/the-top-3-reasons-to-save-money/. [Accessed: December 10, 2016]

Prinsloo, J.W. (2000). The Saving Behavior of the South African Economy. Occasional Paper No 14, South African Reserve Bank. South Africa.

Recardo, D. (1917). The principles of political economy and taxation. 3rd Edition.

Rehman. H., Bashir, F., & Faridi. M. Z. (2011). Saving Behavior among Different Income Groups in Pakistan: A Micro Study, International Journal of Humanities and Social Science, 1(10).

The Balance. (2016). Seven reason for saving. [Online] Available: https://www.thebalance.com/learn-the-most-important-reasons-to-save-money-2386123, [Accessed: December 10, 2016]

The Extra Income Project. (2016). Seven Best Reasons You Should Save Money. [Online] Available: http://theextraincomeproject.com/7-essential-reasons-save-money/. [Accessed: November 15, 2016]

The Minitab Blog. (2016). VIF [online], Available: http://blog.minitab.com/blog/starting-out-with-statistical-software/what-in-the-world-is-a-vif. [Accessed: August10, 2016: 10.00PM]

Wikipedia. (2016). Propensity. [Online] Available: https://en.wikipedia.org/wiki/Marginal_propensity_to_save. [Accessed: August10, 2016: 10.15 PM]

Yong, G. A., & Pearce, S. (2013). A Beginner’s Guide to Factor Analysis: Focusing on Exploratory Factor Analysis, Tutorials in Quantitative Methods for Psychology, 9(2), pp-79-94.


How to Cite
Ahsan, M. K. (2016) “Why do People have the Saving Behavior? A Reference from Sylhet City”, ABC Journal of Advanced Research, 5(2), pp. 77-90. Available at: https://i-proclaim.my/journals/index.php/abcjar/article/view/26 (Accessed: 22November2019).
Bookmark and Share