Determinants of the saving behaviour of Saudi households : an investigation of saving motives and awareness

Abstract EN

This paper aims to investigate the effect of saving motives and awareness on the saving behaviors of Saudi Arabian households.

To this end, we collected primary data through a survey of 432 Saudi households.

This study considered seven categories of saving motives (emergencies, retirement, children, necessities, home, holidays, and investment) and two measures of saving awareness (concept and importance).

The results showed that emergencies, necessities, retirement, and investment were the most potent motives for demonstrating saving behaviors.

In addition, there was also evidence that the saving awareness of Saudi households also positively influences their saving behaviors.

The findings may inform policy makers and behavioral finance specialists in developing products and services to encourage household saving behaviors and improve saving awareness through financial education.