ABSTRACT

This study examined the determinants of saving behavior among rural households in Ikwuano L.G.A. of Abia state, Nigeria. A total of 80 respondents were randomly selected for the study using multistage random technique. Data used in this study were generated using well structured questionnaire. In data analysis, descriptive  statistics, regression analysis and simple correlation analysis were employed. Results obtained on socio-economic characteristics of the respondents shows that majority were male, married with mean household size of 6, farming was the major occupation of rural households with majority having basic education. The factors that were statistically significant in influencing household savings are total income, age, farming experience, level of education and value of assets. The simple correlation analysis examined on the relationship between amounts of money borrowed from financial institutions and their saving deposits with the institution showed that there is positive relationship existing between the two variables. Lack of awareness on savings mobilization, inadequate rural integration by extension agents, conservatism, high interest rate and poor literacy were the obvious constraints to the saving behavior of rural households in the study area. Enlightenment campaigns via symposiums as a means of improving on savings mobilization is suggested to enable rural households attain a commendable height as regards having a good saving culture.