A Study On Saving & Investment Behaviour of Middle Class Income Households

Aggregate savings in any economy, is dependent on a number of inter- dependent variables. For economic planning, the planners should have an idea regarding the volume of saving of different groups of people and the method by which saving can be improved. To frame appeals for saving there is the need to know about the saving motives. An understanding of the saving preferences will also help in designing saving instruments which effectively stimulate saving. As was observed by Mody (1983), “given the present weight of the household sector in total saving, to step up the saving in the economy would require a stepping up of the saving rate in the household sector. Thus, there is the need to carefully understand the determinants of both the household saving rate and the saving pattern”