Megersa Nugusa

Assessment on the Determinants of Household Saving Behaviour Megersa Nugusa

"The poor households want to save...but it is not easy", . But if we took the broader definition, saving is a means to secure future consumption at any time and poor households can save. Saving defined as the action of putting aside a part of current income in order to consume or invest it later on. Resource accumulated in the form of capital and available for current and future investment is the foundation of economic growth. Saving is one of the best mechanisms of accumulating capital. Household savings is an important factor for the economic growth of the country. In Ethiopia, the rural population is very much need for economic development. Saving behavior needs to be instilled in young children up to adulthood. The culture of saving that is instilled early on in children can give many benefits, form economical characters, discipline in spending money and prepare for the future.