Saving Behavior of Rural Households in Kwara State, Nigeria

Abstract

Savings are very imperative for supporting and developing rural enterprises. The inability of households to save over time can significantly influence the rate and sustainability of capital accumulation and economic growth in developing countries. This research therefore assessed the level of savings and its correlates in rural areas of Kwara state, Nigeria. Data were obtained using multi- stage sampling techniques and analyzed using descriptive statistics the tobit regression model. The result showed that rural enterpreneurs (81.0 percent) were mostly male-headed and the household heads (73.5 percent) that combine farming with other non-farm activities had higher income and savings compare to household heads with only one source of livelihood. Also, most household heads spent their income on food and majority (88.7 percent) save for investment purposes but their average monthly savings was less than five thousand naira. The result further showed age squared (p<0.10), farming experience (p<0.10) and diversification into non-farm activities (p<0.05) positively influence rural saving rate.