How and why do the poor save? Determinants of saving behaviour of rural poor
by Sonal Purohit
International Journal of Business and Globalisation (IJBG), Vol. 32, No. 1, 2022

Abstract: This study examined the savings behaviour of rural poor with a focus on the motives of saving and preferred savings mechanisms. One of the major causes of financial distress in lower income groups especially in developing countries has been lack of sustainable saving. The existing literature has mainly focused on the saving capacities of rural poor which is inadequate in explaining the saving behaviour. Building on the existing theories a more systematic view on savings motives and mechanisms preferred by this segment is presented in this research. The results revealed that the poor do not save for a goal and the only motive which significantly increases the likelihood of saving is to reduce the need for credit. Creating a corpus for medical exigencies was a major motive for informal saving. Providing a basic sustenance financial foundation for children was found to be a major motive for saving and this probably is a new finding which needs further research. This research has important implications for policymakers and financial professionals in formulating recommendations or developing financial, business plans.

Online publication date: Thu, 01-Dec-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com