Savings is an important mechanism that drives capital formation and economic growth. Savings behavior among slum dwellers is a topic of interest since individuals from these areas are seen as low income earners living in squalor. The aim of this study is to examine the savings behavior as well as the employment and accommodation aspirations of residents of Jamestown, and Nima, comparing them to those of residents in Kanda, a non-slum community. A total of two hundred and forty respondents obtained from simple random technique were interviewed to collect data.
The study confirmed that residents of slum areas have a high tendency to save although in lower levels than residents of non-slum areas. About 68% of the respondents living within the slum communities save. It was also realized that a majority of slum dwellers are actively employed and receive lower earnings than residents in non-slum areas. A whopping 91% of the people in the slum communities are engaged in some form of employment. Despite their low remuneration and poor living conditions, the study showed there is a general reluctance of slum dwellers to change their jobs or relocate to other communities. Only 33.5% want to relocate to other neighborhoods. They indicated strong family ties, and a sense of belonging as the reasons why they choose to remain in their communities. In terms of education, 22% of the interviewees in the slum communities have no form of formal education. Also, 7.5% of the respondents have primary education, 13.5% have been educated to the Junior High School level, 31.5% reached the Senior High Level, with only 4.5% attaining education to the tertiary level. However, 21% have been through some form of adult education. Based on these findings, it was recommended that governmental agencies and financial institutions have a major role to play in empowering slum residents with the knowledge and ability to increase their savings through initiatives that improve
their financial literacy and their current trades. Government is also advised to embark on projects that upgrade slums instead of relocation or eviction of slum dwellers as upgrading is likely to yield more productive results.