Analysis of Household Heads’ Decision-To-Save with Financial Institutions in Ghana

Savings in Ghana have generally being described as low in terms of the number of households who save, trends in amounts of savings and the attitude towards savings. This called for the examination of factors that motivate household heads to save in the Bole District of Ghana. A total of 120 household heads were interviewed and these heads were selected using stratified random sampling. The results of the logit regression show that educational status, value of assets, shock to household head and having commitment to financial institution positively and significantly explain the decision of households to save. The net dependents, being a male household head and being a Muslim household head negatively affect their decisions to save in the district. Therefore government needs to collaborate with stakeholders in education to educate communities on the need to get themselves education, and deal with cultural and religious traits that run at variance with savings.