Determinants of Individual Outcomes and the Behavior of the Albanian Family in Household Savings

Abstract

The savings are a very important tool for the future of security, because there are moments in everyone's life when money is urgently needed, when it becomes the present future than ever. Saving does not mean to restrict spending or not spending, you save means rationalization of expenditure, while well-used funds available, so it is important to create a savings plan. The main purpose of this study is to analyze the impact that certain domestic determinants have in the level of domestic savings. In this study we take factors such as: monthly family income, number of persons in the household (family size), the number of persons that provide income for the family, the family business impact for those families who have a family business, and if the family has a saving plan. Relationship between the level of household savings and these internal factors is tested using a multiple linear regression model as small squares method (OLS) Analysis is based on a survey of 270 families in the city of Elbasan. After analyzing the data through econometric model it shows that the factors affecting the level of household savings are: the level of monthly household income, having a savings plan, the level of the monthly household income and having a saving plan. Also, from this survey we have managed to realize the importance that families give their family savings, the main reasons that push them towards saving and the place where they keep their savings.

DOI: 10.5901/ajis.2016.v5n3s1p424