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, Peshawar. 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 investment was Rs.7649/month. The author concluded that households saving and investment over there are affected by a number of variables like income, education, employment status, the number of dependents, assets etc. The study recommended that more employment opportunities should be created to minimize the negative impact of dependents on household saving and investment. Secondly, high expenses of children’s education could be reduced by providing low-cost education; 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.