ANALYSIS OF TECHNIQUES FOR ENCOURAGING SAVINGS CULTURE AMONG UNDERGRADUATES IN TERTIARY INSTITUTIONS IN NIGERIA- BANKING AND FINANCE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The concept of Savings constitutes that amount of money set aside for future use rather than spending it immediately. It helps the individual to abstain from impulse purchasing and wasteful spending. Previous studies show that a positive relationship exist between savings and growth; with higher saving leading to higher growth. According to harod domar and w.w. Rostow the mobilization of domestic and international savings enhances investment and economic growth. Todaro and Smith, 2006. Alguacil et al 2004 also allude to the fact that the mobilization of international and domestic savings is essential for meaningful domestic investment.  Odhiambo (2008) also stated that savings plays a vital role towards the development of the financial sector. While Loibl et al (2011) supported the fact that the culture of constant act of saving is very essential for the financial independence and stability of the households. It is postulated that the formation of the habit of savings contributes to an individual’s ability to save. This in turn builds a positive perception towards savings and thereby increases savings level. Allesie and Lusardi (1997) stated that the formation of the habit of saving has an effect on an individual’s consumption and savings. The use of different accounts for different savings goals enhances commitment to savings. The study seeks to proffer an analysis of techniques for encouraging savings culture among undergraduates in tertiary institution.

1.2 STATEMENT OF THE PROBLEM

The propensity to save is determine by several factors. This indicates the fact that many people do not have the willingness to save neither are they willing to sacrifice the present pleasure for future needs. This is practically the habits of among young individuals such as undergraduates. Therefore, their perception towards the habit of savings seems naturally negative. However, it is postulated that the formation of the habit of savings contributes to an individual’s ability to save. This in turn builds a positive perception towards savings and thereby increases savings level. The problem confronting the study is to proffer an analysis of techniques for encouraging savings culture among undergraduates in tertiary institution.

 

1.3 OBJECTIVES OF THE STUDY

The Main Objective of the study is to proffer an analysis of techniques for encouraging savings culture among undergraduates in tertiary institution; The specific objectives include:

  1. To ascertain the determinants of savings among undergraduate students.
  2. To determine the motives for savings among undergraduate students. 
  3. To establish the techniques to encourage undergraduate students’ savings culture.

1.4 RESEARCH QUESTIONS

    i.        What are the determinants of savings among undergraduate students? 

   ii.        What are the motives for savings among undergraduate students? 

 iii.        What are the techniques to encourage undergraduate students’ savings culture?

1.5 STATEMENT OF THE HYPOTHESIS

Ho1: There is no significant technique for encouraging savings culture among undergraduate students of tertiary institutions in Nigeria.

 

1.6 SIGNIFICANCE OF THE STUDY

The study seeks to develop a culture of savings among undergraduate people as a means of fostering the culture of savings and investment for the economic growth of the nation.  

 1.7 SCOPE OF THE STUDY

The study focuses on the appraisal of the analysis of techniques for encouraging savings culture among undergraduates in tertiary institution.

1.8 LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors.

1.9 DEFINITION OF TERMS

INCOME DEFINED

Income is defined as income earned by an individual.

 SAVINGS DEFINED

Savings constitutes that amount of money set aside for future use rather than money spent immediately.

HOUSEHOLD DEFINED

These are persons or group of persons, living together in the same house hold unit.

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