The Factors that Effects 0n Household Saving Behaviors in Koh Peah Community, Trang Province

Abstract

The Factors that Effects on Household Saving Behaviour in Koh Peach Community, Trang Province This study investigates effects on household saving behaviour in Koh Paech Community, Trang Province. The objectives are (1) to examine the household saving behaviour, (2) to analyse various factors affecting the household saving behaviour, and (3) to compare household saving behaviour between general household and those which are members of the Saving Group for Production. For primary data, questionnaires are employed to obtain information from a total 326 households interviewed in July 2012. These data are examined and evaluated by way of simple statistical analysis, with multiple regression used to investigate the relationship between household saving and factors determining it, such as the household leader’s age, income, expenditure and level of education. The study includes consideration of the boosting household consumption policies of the Thai government. Results of this paper indicate that most household leaders are male (70.9%) and half of them are over the age of 50 years. The majority are agriculturists (57%) and most have an elementary education (58.3%). Average number of dependents is two, and the average income of households interviewed is 352,904 baht/year. Average household expenditure is 186,151 baht/year, average assets are 2,681,596 baht/year, average debt is 311,809 baht, and average household saving is 91,008 baht/year. Multiple regression analysis reveals that income (0.78) and assets (0.18) both have highly significant positive relationships with household saving, while for

expenditure (-0.36) there is a highly significant negative relationship. An unexpected finding of no effect from interest rates on household saving may be due to a preference for convenience over returns from saving. In comparing saving behaviour, the result show that households which are members of the Saving Group for Production have an average saving of 80,342 baht/year. They mostly save money before spending, and usually have monthly security deposits. For general households, the average saving is 96,274 baht/year. They mostly spend rather than save money, and have infrequent security deposits.