Personal savings and household investments: a cohort study among primary school teachers

https://doi.org/10.35912/amor.v1i4.468
Published: Mar 4, 2021

Abstract:

Purpose: This study aimed to determine the relationship between personal savings and household investments among a cohort of primary school teachers in lira city.

Research methodology: The study used a cross-sectional survey design with a quantitative research approach. Data were collected from a sample of 103 respondents with the period between October 2020 and January 2021 using self-administered questionnaires. The Content Validity Index was used to establish validity, while the Cronbach's Alpha Coefficient was used to test reliability.

Results: Using descriptive and inferential statistics, the results suggest that civil servants' personal financial planning is high due to personal savings. Also, the level of household investment is high and the correlation reveals that the relationship between private savings and household investment is very weak and negative.

Limitations: This study focused on personal savings only, yet other constructs affect household investments.

Contribution: This study's results help civil servants in Lira city and Uganda in general since personal savings are an essential factor to household investments.

Keywords: Personal savings, Household investment, Primary teacher, Financial planning, Lira

Keywords:
1. Personal savings
2. Household investment
3. Primary teacher
4. Financial planning
5. Lira
Authors:
1 . Emmanuel Akeny
Faculty of Management Sciences, Lira University, Lira, Uganda
2 . David Mwesigwa
Faculty of Management Sciences, Lira University, Lira, Uganda
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How to Cite
Akeny, E., & Mwesigwa, D. (2021). Personal savings and household investments: a cohort study among primary school teachers. Annals of Management and Organization Research, 1(4), 261–270. https://doi.org/10.35912/amor.v1i4.468
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Vol. 1 No. 4: May
Articles
References

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  2. ASSP. (2016). Agricultural sector strategic plan, ministry of agriculture, animal industries and fisheries. Kampala.
  3. Bank of Uganda (BoU). (2013). Strategy for financial literacy in Uganda. Kampala.
  4. Chalicha, S. (2015). Empowerment of civil servants through Savings and Credit Cooperative Society (SACCOS): Evidences from Institute of Accountancy Arusha. International Journal of Business and Commerce, 5(09).
  5. Chappelow, J. (2018). Personal savings rate. Retrieved from Investopedia: https://www.investopedia.com/terms/s/savings-rate.asp
  6. CPCU. (2015). Chartered property casualty underwriter. The Institutes (CPCU Society).
  7. Creswell, J. W. (2012). Research design: qualitative, quantitative and mixed methods approaches (4th edition ed.). SAGE Publications Inc.
  8. Cristadoro, K., and Marconi, D. (2012). Household savings in China. 10(3).
  9. Dablar, W. (2014). DALBAR's quantitative analysis of investor behavior. RBC Wealth Management, RBC Capital Markets.
  10. Donaldson, S. J. (2011). Single-fund investment options: portfolio construction simplified for investors . Valley Forge, Pa.
  11. Ellis, K., Lemma, A., and Rud, J. (2010). Investigating the impact of access to financial services on household investment. Westminster, London: Overseas Development Institute.
  12. Finscope. (2018). Report on banking and the status of financial inclusion in Uganda: Insights from FinScope 2018 Survey. Kampala.
  13. G.A.F. (1987). Keynes's theory of investment and saving. in: the Keynesian revolution and its Critics. London: Palgrave Macmillan.
  14. Gliem, A., and Gliem, R. (2003). Calculating, interpreting, and reporting Cronbach's Alpha Reliability coefficient for Likert-Type Scales. Midwest Research to Practice Conference in Adult, Continuing, and Community Education. Science and Education Publishing.
  15. Hilgert, A. M., and Hogarth, M. J. (2002). Household financial management: the connection between knowledge and behavior. Federal Reserve Bulletin.
  16. Jia, D., Li, R., Bian, S., and Gan, C. (2019). Financial planning ability, risk perception and household portfolio choice. Emerging markets finance and trade, doi: 10.1080/1540496X.2019.1643319
  17. Kasalirwe, F., and Lokina , R. (2016). Financial literacy and household investment choices in Uganda. Kampala.
  18. Keynes, M. (1936). The general theory of employment, interest and money. international relations and security network. Zurich: Palgrave Macmillan .
  19. Kingsley. (2010). Family economics and financial education, 2010: get ready to take charge of your finances using the secrets of saving. University of Arizona.
  20. Krejcie, R.V., and Morgan, D.W. (1970). Determining sample size for research activities. Educational and psychological measurement.
  21. Mario, N. (2019). The principles of investments. the social wellbeing research centre. University of Malaya.
  22. Matewos, R. (2015, Jan). Financial literacy for developing countries in Africa: a review of concept, significance and research opportunities. Journal of African Studies and Development, 8, 1-12. doi:10.5897/JASD2015.0331
  23. MoLHUD. (2016). The Uganda National Housing Policy, 2016: Adequate Housing for All. Ministry of Land, Housing and Urban Development. Kampala.
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  26. NAFPA. (2019). National Association of Personal Finance Advisors Survey Report.
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  30. Sherman, D., and Susan, L. (2013). Household investments: still a Man's World?
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