A Study on the Socioeconomic Determinants Affecting Individuals’ Savings Habits

By : Meenakshi Tyagi, Gagneet Kaur Bhatia, Tanushree Sanwal, Shrishti Singh

Page No: 141-150

Abstract
Savings are one of the highly important components that may be used to create capital and invest to increase production, employment, income, and other socio-economic factors that contribute to the development of a nation. However, domestic savings are also thought to be crucial for covering unforeseen expenses for individuals, families, and businesses. The portion of current income that is deposited in a bank account or other financial institution for possible future use rather than being used for immediate consumption is known as savings. Within the context of the economic field, savings are a crucial macroeconomic indicator that must be examined at both the individual and household levels. In an emerging market like India, the majority of people are engaged in the unorganized sector, where low and uncertain wages are considered the main features of this sector, and the result is that MPC is greater than MPS. Elevated rates of inflation and consumption also have the negative effect of reducing savings and capital formation. This paper aims to examine the socioeconomic limitations that Delhi residents experienced during the inflationary period. In order to investigate the impact of factors like family size and income, a questionnaire was created. 50 respondents were included in the sample. The respondents’ ratings were analyzed using regression analysis. The findings indicate that inadequate savings are associated with low income.

Authors:
Meenakshi Tyagi : Associate Professor, KIET Group of Institutions, Delhi NCR, Ghaziabad, India.
Gagneet Kaur Bhatia : Associate Professor, Ideal Institute of Management and Technology, India.
Tanushree Sanwal : Assistant Professor, KIET Group of Institutions, Delhi NCR, Ghaziabad, India.
Shrishti Singh : MBA Student, KIET Group of Institutions, Delhi NCR, Ghaziabad, India.
 

DOI: https://doi.org/10.32381/PROD.2024.65.02.4