ABSTRACT

Savings play an important role in the economic development of any country and as such, the primary objective of all government’s policy is geared towards promoting savings and capital formation in the economy. Household savings provide or serve as backup in case(s) of international capital flow shocks. As such, the main aim of the study was to assess the factors that determine savings as well as the demographic factors that influence savings within the Ga Central Municipality.

A descriptive study design approach was adopted in the methodology in which 120 questionnaires were administered through a gatekeeper, retrieved and used for analysis. The population for the current study were the inhabitants of the Ga central Municipality with a total population of 117,220. The study investigated various characteristics such as income level, economic activity, and family size among other variables.

The study revealed that majority of the respondents who lived in their own houses saved more than those who lived in rented apartments. The findings also indicate that as people age, the less likely they are to save. Households with a lot of dependents as well as married couples tend to save less. Recommendations were made based on the findings of the study for policy direction and future research.