A study on the socio economic factors affecting resources of savings
When examining the results of this study, it is clearly evident that there is a direct impact from individual income, age, educational level, gender and nature of occupation on savings accumulation resources. This study further proves that there is a clear distinction between the savings behaviors of the individuals among the urban and the rural sector households of Sri Lanka. Further explaining, the study revealed that the rural sector households focus more on savings while the urban sector households focus more on investments. Within the urban sector gender is not a decisional factor for savings while it is opposite in the rural sector where gender has a clear influence on savings. Even though there isnít much of a difference in resources of savings in both urban and rural sector, the study reveals that in both the sectors there is a high tendency among the female population to be attracted towards improper resources of savings than the male population. Further explaining it is clear that this tendency is relatively high among the population which doesnít earn a fixed income during a certain period of time than the individuals who do earn a fixed amount of income. The education level of an individual is a very important factor that influences the source of savings and saving behaviour of an individual. Relatively, individuals with lower educational levels tend to save in improper resources of saving at a lower rate than the individuals with higher level of education. Thus financial institutions should be supported to introduce more attractive procedures that include simple terms and conditions and less amount of documentation to motivate individuals with lower educational levels towards proper resources of savings. Generating techniques that will attract low income earners towards savings, introducing saving methods on low and fixed annuities and encouraging them to continue will enhance the household savings and will benefit the domestic resources to increase the level of investments.