Abstract:
Saving represents one of the most predictable determinants of personal and economic development. It is a strategic variable in achieving financial security growth affecting both individual and national wellbeing. However saving level in Ethiopia is limited and little known empirically about determinants of saving performance of women headed households. This study was initiated with the objective of identifying major determinant of saving performance of women headed households in Bahir Dar city. For the purpose of the study cross sectional data was used. Interview was used to collect the data from 409 sample households. The study employed both qualitative and quantitative censored tobit economic regression model methods to measure the relationship between women household heads saving and independent variables. The descriptive method of the analysis shows that among total respondents, 64.74 % of women household heads have no saving experience and 35.26% of respondents have involved in saving exercise from their disposable income. Low level of income, low level of financial knowledge and upland expenditure with constant source of income is among main causes of that does not save help women save properly. The quantitative analysis of study shows that occupation; house ownership status, financial literacy level, occupation and income can significantly and positively influence the probability to save of women household heads whereas family size and age is negatively and significantly affect women household heads saving. Hence financial institution especially banks, governments, academicians and policy makers should take their responsibility to encourage women headed household saving which reflect by improving income of households, incentives, use of financial planning for consumption and expenditure, housing status of households, family sizes and stabilize the price of goods and services.
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