The Effect of Educational Attainment on Individual Saving Behaviour: An Empirical Investigation

Abstract

The study employs a quantitative research methodology, utilizing survey data collected from a sample of individuals residing in Islamabad, Pakistan. The analysis explores the association between different levels of education (e.g., high school, bachelor's, master's) and key indicators of saving behaviour, such as the presence of savings accounts, the frequency of saving, the proportion of income saved, and the primary saving goals. The findings reveal a significant positive correlation between educational attainment and positive saving behaviours. Individuals with higher levels of education are more likely to possess savings accounts, have multiple savings accounts, and prioritize long-term saving goals, such as retirement planning. Moreover, they tend to save a higher proportion of their income and exhibit greater confidence in achieving their financial goals. These findings underscore the crucial role of education in fostering responsible financial behaviour. By enhancing financial literacy, increasing earning potential, and cultivating critical thinking skills, education empowers individuals to make informed financial decisions, develop effective saving strategies, and achieve their long-term financial aspirations. Education significantly influences saving behaviour. Higher education is associated with increased financial literacy and improved saving outcomes. Factors like income, occupation, and cultural background also significantly influence saving habits.

This study contributes to a better understanding of the multifaceted relationship between educations and saving behaviour, providing valuable insights for policymakers and educators in developing strategies to promote financial well-being among individuals at all levels of education.

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