An Analysis of Household Saving and Investment Behavior among Different Income Groups in Urban Area of District Peshawar

Abstract

The author conducted a study to analyze the saving and investment behavior among different income groups of the urban households of Hayatabad, Pe sha war. A sample of 201 respondents from different phases was interviewed. The proportional allocation method was used to divide sample households according to the plot size. The findings showed that the level of literacy was 97.51% in the study area whereas the employment status of the households was 99.5%. The average household size was 20.5% with an average monthly income of Rs. 87,333. Average household saving was Rs.12,900/month and average invest ment was Rs.7649/month. The author concluded that households saving and invest ment over there are affected by a number of variables like income, education, em ployment status, the number of dependents, assets etc. The study recom mended that more employment opportunities should be created to minimize the nega tive impact of dependents on household saving and investment. Secondly, high expenses of children’s education could be reduced by providing low-cost edu cation; as a result, a large portion of income could be saved and can be invested further. Moreover, risk should be minimized to motivate people to invest in different fields.