The Impact of Socio-economic Factors on Saving and Investment decisions

Abstract

This study identifies the association between socioeconomic factors and an individual’s saving behavior. This study evaluates the effects of gender, age, marital status, and education on saving behavior and the determinants of saving behavior among individual investors. The sample size consisted of 200 respondents from the Nashik District of Maharashtra State. The Chi-Square test is used in this study to determine the impact of socioeconomic factors on saving patterns and test the hypothesis.

Socio-economic factors are widely expected to play a vital role in an individual’s saving and investing behavior. Most Socio-Economic factors, such as marital status, gender, age, education, and income, seem to have influenced individuals' saving decisions in this study. This study concludes that there is no significant association between gender and marital status in individuals’ savings. However, there is a strong association between age, education, income, and individuals’savings. Furthermore, this study found that a person saves because they want to purchase a house/property in the future and achieve financial independence. Individuals also save for marriage or family affiliates and for unforeseen uncertainties and risks.