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The savings behavior of individuals has been a topic of both macroeconomic and policy importance throughout history. Theoretical and empirical research shows that savings result from several demographic and economic factors working together to produce long-term, sustainable economic growth. This study therefore examined the nexus between domestic savings and sustainable economic growth in a South African perspective between 1990–2023, emphasizing the critical role that savings play in fostering long-term economic stability and environmental resilience. The ARDL framework was used to analyze data from the World Bank and the South African Reserve Bank. The results of the study demonstrate that corporate savings have a major effect on sustainable economic growth, especially over the long term. When corporate savings rise by 1%, the economy expands by 3.12%, which highlights the significant multiplier effect of investment. The extent of this impact depends on factors such as the efficiency of capital allocation, technological capacity, financial market development, government policies, and macroeconomic stability. These factors collectively determine how effectively corporate savings are transformed into productive investments that drive sustainable economic growth. Conversely, savings made by the government and the public, especially in the long run, have no appreciable impact on sustainable economic growth. Given that domestic savings mobilization is the most suitable channel for financing capital accumulation to support economic growth and development, the study suggests reviewing current policies to encourage domestic savings mobilization. This paper contributes to the broader discourse on sustainable economic policies in emerging markets, offering actionable insights for policymakers, financial institutions, and stakeholders promoting a more sustainable economic future for South Africa. [ABSTRACT FROM AUTHOR]

This paper analyzes the role of newborn gender in household investment decisions. Parenting a new baby is associated with a reduction of the share of financial wealth held as cash and an increase in risky investments. The reallocation is however gender‐heterogeneous: the increase in the share of both total and financial wealth allocated to risky assets when parenting girls is reduced for households parenting boys. The effect is driven by the first child. Parents of newborn girls hold riskier portfolios because they make financial decisions influenced by their expectations on the autonomy and financial independence of newborns in adulthood. [ABSTRACT FROM AUTHOR]

By using a unique dataset of more than 20,000 individuals with savings accounts from August 2019 to October 2020 in South Africa, this paper examines how the COVID crisis has affected savings behavior, and by affecting savings, impacted wealth inequality. We find that while COVID increased savings on average, the increase in average savings is due to a small group of higher income savers which substantially increased their savings, while a large group stopped saving. [ABSTRACT FROM AUTHOR]

The goal of this article is to analyze the impact of household savings and household loans on gross fixed capital formation in Bulgaria. The research is carried out on the basis of quarterly data for the 2010-2023 period. The sources of the data are the National Statistical Institute (NSI) and the Bulgarian National Bank (BNB). The algorithm of the empirical research includes: checking for stationarity by means of the extended Dickey-Fuller test; determining the optimal lag of the model; Johansen cointegration test; specification of vector error correction model (VECM). As a result of the research, it has been established that there is a long-term relationship between the variables gross fixed capital formation, household savings and household loans. At the same time, about 39.2% of the disequilibrium between the studied variables in a certain quarter is compensated in the next one. [ABSTRACT FROM AUTHOR]

In many countries, the structure of wages and the labor law legislation are completely different for public and private sector employees. In this paper, we develop a general equilibrium overlapping generations model to study the effect of such differences on household savings and labor supply. To conduct our analysis, first we use microdata from two Brazilian household surveys to document that civil servants save and work significantly less than their counterparts in the private sector. Second, we use matched employer–employee microdata from Brazil (RAIS) to document differences between the two sectors in terms of wage and unemployment risk. Then, we calibrate the model to be consistent with micro and macro evidence for Brazil. Our counterfactual exercises show that differences in wages characteristics and labor law legislation account for nearly 70% of the gap in savings between civil servants and private sector workers, and 57% of the gap in labor supply. In addition, we find that eliminating those differences can produce sizable increase on aggregate savings, employment, and welfare. [ABSTRACT FROM AUTHOR]

Copyright of China Forestry Economy is the property of China Forestry Economy Magazine Agency and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

AbstractOne defining feature of China’s economy has been its extremely high domestic savings over the past few decades. This study sheds new light on natural disasters and aims to investigate the impacts of natural disasters on household savings. We find that natural disasters significantly increase household savings. On average, one additional disaster-related unexpected death per 1,000 populations corresponds to an increase of 12.1% in household savings, which is translated into an increased household savings of 724 million Chinese Yuan per county and 4,957 Chinese Yuan per household. Moreover, the effect of natural disasters can be explained through income vulnerability and experience spreading channels. Finally, the heterogeneity analysis reveals that regions with better infrastructure, medical and welfare resources withstand lesser negative disaster shocks on precautionary savings. It thereby emphasizes that a growing economy must be matched with a good design of infrastructure and social facilities to cope with the growing frequency of natural disasters, especially in the developing world. [ABSTRACT FROM AUTHOR]

The main purpose of this research is to empirically examine the antecedents of household savings behaviour in the Metekele, Beneshangu Guzu state of Ethiopia. In this study, three broader factors (household characteristics, socio-economic variables and institutional variables) influencing savings decisions of households have been identified and examined. This study followed mixed method research design with questionnaire and in-depth interviews as the main instruments. Binary logistic regression has been mainly utilized to analyse the quantitative data. The findings revealed age, educational level, family size, number of livestock unit, income, irrigation utilization, production season, participation in non-farm activities, use of credit, training and education significantly impact savings behaviour. However, sex, religion, marital status, land ownership and expenditure were found insignificant contributors to the model. The government and concerned parties should support more for the decision to save by facilitating and undertaking training on saving options, conducting regular review and monitoring to develop a clear policy on the importance of savings specifically for households on habit of regular savings. [ABSTRACT FROM AUTHOR]

Digital credit has expanded rapidly in Africa, mostly in the form of short-term, high-interest loans offered via mobile money. Loan terms are often opaque and consumer financial literacy is low, providing opportunities for predatory lending. A regression discontinuity analysis shows no negative effect of access to digital loans on financial well-being, but the majority of borrowers fail to repay on time and incur high late fees. We randomize exposure to a short phone-based financial literacy intervention. The intervention improved knowledge and marginally improved loan repayment but increased loan demand, increasing overall default risk.

The purpose of the article. The aim of the article is to determine whether there is a need to differentiate between countries in terms of the amount of aid they provide for the return of their citizens, and in which of the European countries a person can save the most and build up wealth in the fastest way. Methodology. The study is based on historical data from 2016 to 2021 on average salaries, average cost of living, average price per square meter of housing in a country’s capital and the average price of a VW Golf IV car in 37 European countries. Results of the research. In the general view of the study presented below, the countries to which economic migration can bring the most benefits are Switzerland, Luxembourg, and Denmark. On the other hand, countries that may not meet economic needs include North Macedonia, Moldova, Montenegro, and Albania. One can save the fastest per square meter of housing in Belgium, Iceland, and Switzerland. The fastest way for people to save money for a car is available in Switzerland, Luxembourg, and Great Britain.

Because of the convergence of demographic, political, and economic trends, retirement has become a significant stage of human life, which currently requires thoughtful and careful planning. Therefore, social pension schemes – a type of system under which the benefits are being provided – and women’s individual saving decisions should give consideration to the fact that it is necessary to accumulate additional funds which should be sufficient for several decades after retirement.

Ignoring the effects of inflation in retirement planning can have severe consequences for an individual's future financial well‐being. Yet, many pension funds do not communicate inflation‐related information, presumably for the fear of reduced contributions once the members understand how low the "real" return on saving for retirement is. As an alternative prediction, the provision of inflation information could increase pension contributions, because it reveals possible pension shortfalls. In cooperation with a major German pension fund, we conduct a field experiment, in which we vary the inflation information provided to the fund members, to explore this important issue. Among all participants, we find mostly positive but insignificant effects of the inflation information on pension contributions. Among those participants who voluntarily changed their pension contributions after the experimental intervention, the provision of inflation information significantly raises the likelihood of increasing pension contributions. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Finance & Financial Law / Finanse i Prawo Finansowe is the property of Wydawnictwo Uniwersytetu Lodzkiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

(1) Background--Common prosperity is the essential requirement of socialism with Chinese characteristics. To achieve common prosperity in the key state-owned forest areas is the goal of all forestry workers and their families. How to improve the livelihood of forestry workers' families and resolve multidimensional poverty has become a hot issue in the research field of forestry economics for many years. Optimizing the household assets allocation and rationally arranging the current consumption, savings and the proportion of investment is a family financial behavior aiming to realize the appreciation and utility maximization of the household assets of the forestry workers in the whole life cycle, and an effective way to increase the family income of the forestry workers and promote the common prosperity in the forest areas. (2) Methods--Using the methods of literature research, quantitative research and qualitative research, this paper firstly analyzes the logical mechanism of household assets allocation optimization enabling the key state-owned forest areas to achieve common prosperity from two aspects of theoretical logic and practical logic, and then discusses the behavioral characteristics and realistic challenges of household assets allocation of the forestry workers. Finally, this paper puts forward the path selection of the key state-owned forest areas to achieve common prosperity by optimizing the household assets allocation of the forestry workers. (3) Results--The optimization of household assets allocation enables the key state-owned forest areas to achieve common prosperity, which is reasonable in theory and feasible in practice. The household assets allocation behavior of the forestry workers in the key state-owned forest areas has the following characteristics: First, the household assets allocation structure is single, and the proportion of real estate is high. Second, there is a strong propensity to saving and less participation in risky investments. Third, the participation rate of production and operational investment is low, and the overall trend is declining year by year. The household assets allocation optimization of the forestry workers in the key state-owned forest areas faces the following practical challenges: First, the aging trend of the forestry workers is obvious, their education level is generally not high, and they generally lack basic knowledge of finance and awareness of assets allocation. Second, the livelihood vulnerability of the forestry workers' families has not been completely eliminated, and the household assets allocation options are limited. (4) Conclusions and Discussions--Based on the above analysis, this paper proposes the path selection of household assets allocation optimization enabling the key state-owned forest areas to achieve common prosperity: First, guide the forestry workers' families to change the concept of assets allocation and enhance family financial awareness. Second, encourage and support the forestry workers to carry out undergrowth economy entrepreneurship. Provide entrepreneurship guidance, skills training, policy support and market development to encourage innovation in the undergrowth economy and the application of modern agricultural technologies. Third, establish a market mechanism for realizing the value of forest ecological products to provide more investment choices for the forestry workers' families. [ABSTRACT FROM AUTHOR]

Copyright of China Forestry Economy is the property of China Forestry Economy Magazine Agency and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Orientation: COVID-19 pandemic inflicted economic damage on an unprecedented scale worldwide, and was expected to have a direct influence on the personal finances of households and individuals. Research purpose: The main objective of the study was to establish the association between COVID-19 and the accompanying lockdown, and household and personal finances in South Africa. Motivation for the study: More information is needed about the actual influence of a sudden economic crisis on household finances, especially financial well-being. Research approach/design and method: This cross-sectional study was exploratory in nature and followed a quantitative non-experimental design within a positivist paradigm. A total of 431 persons participated in the research, which aimed to establish the association between lockdown and income, expenditure, investments, bank balances and savings and outstanding debt. Main findings: Decreases in income were not completely offset by an equal decrease in expenditure. Certain demographic groups were affected more, especially vulnerable groups. They used more of their savings to cover shortfalls and reported a larger increase in outstanding debt. Practical/managerial implications: With regard to personal finance, future efforts during pandemics and other disasters should have a greater focus on vulnerable groups. Support could be in the form of grants supplementing income because not all expenditure is elastic. Assistance is also needed with grocery expenses, as this category of spending saw the greatest increase, placing maximum strain on household finances. Contribution/value-add: This academic study was conducted to examine the overall association between lockdown during the pandemic and household finances in South Africa.

Orientation: The neoclassical loanable funds theory predicts that fiscal deficits reduce the pool of available savings in the economy, but heterodox scholarship disputes the claim. Research purpose: The paper sets out to test the relationship between fiscal deficits and private savings. Motivation for the study: Scholars are divided on whether corporate South Africa is building up excess savings, with some arguing that it is not and others arguing that it is because of mistrust of government and uncertainty largely. The trends of net private savings and fiscal deficits suggest that something contrary to the postulation of the neoclassical loanable funds theory could be happening in the South African context. Research approach/design and method: The paper used data for the period 1960–2021 within the Toda-Yamamoto vector autoregressive modelling framework. Main findings: The results show that fiscal deficits increase savings but reduce interest rates in line with the heterodox view that the financial asset creation effect of debt-financed deficits improves savings and reduces interests through the liquidity channel. Managerial/practical implications: The lesson for policy is that fiscal deficits are healthy for the economy. However, the government must manage them at some reasonable level to maintain a constant flow of net financial assets to the private sector, thus bolstering savings. An unhealthy pursuit of fiscal surpluses can shift deficits to households and firms, and breed systemic financial instability. Contribution/value-added: The paper contributed to a nuanced understanding of the role of fiscal deficits in expanding savings, which runs counter to the theoretical underpinnings of fiscal conduct that pursues budget surpluses.

This study seeks to identify the determinants of forced household savings in 16 European Union (EU) member states in 2020. We show that the higher the severity of the COVID-19 pandemic in the state, measured by the intensity of government restrictions or the number of COVID-19-related deaths, the higher the level of forced savings. Such savings also increased with gross domestic product per capita and the financial support provided for households and enterprises by the government. Additionally, savings cultures and personality traits that support compliance with pandemic-related restrictions and enhance coping with the hardship of the pandemic had a positive impact on forced savings. Our results show that while common pandemic shock may lead to discrepancies in forced savings in affected countries, their level depends largely on government response in the form of imposed restrictions as well as financial support for households and enterprises. Therefore, strong fiscal support during the pandemic can be likened to sowing the seeds for post-pandemic recovery, as savings accumulated during the pandemic shock may be used to finance the pent-up demand. This, in turn, suggests that fiscal responses during the pandemic may act as a significant driver of post-pandemic business cycle (de)synchronization and inflation differentials among EU member states and, more importantly, euro-area countries. [ABSTRACT FROM AUTHOR]

Family savings is crucial to long‐term wellbeing for all members in a household, particularly in a Chinese context where costs of living increasingly shift from government to individuals. Savings are typically examined as a balance of financial behaviors and spending preferences; however, this study highlights how savings in a family context is also a function of relationship status. Drawing on intra‐household bargaining models, we analyze data from the 2014 China Family Panel Studies to examine the extent to which men's and women's relative power in the household explain variation in savings levels across families. Our findings indicate that women's greater bargaining positions (e.g., income and assets) correspond with greater savings for the family. However, such bargaining power constitutes a net negative for family savings when women have both greater relational power and higher spending preferences. We suggest that family savings can and should be understood as an outcome of dynamic bargaining conditions in addition to income factors. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to examine the impact of population aging on economic growth. This paper forecasts the impact of population aging (demographic changes) on economic growth (measured by labor supply, household savings, and labor productivity) in three countries China, Japan, and Malaysia. Design/Methodology/Approach: Data from 1990 to 2018 is used in this study. Interestingly, findings suggest that the older the population, the greater the negative impact on the economy. Findings: The results show that population aging has a negative effect on labor supply and labor productivity in the three countries. Surprisingly, the impact of population aging on house saving is negative in Japan and Malaysia but positive in China. Practical implementation: The results of this study may benefit the economists and governments regulators in these three Asian countries-China, Japan, and Malaysia-to overcome the population aging problem in the early stages by investigating the causing of these demographic changes that will negatively affect the economic position in each of these countries. Originality value: The research refers to the aging problem in China, Japan and Malaysia and how this problem may affect the economic growth in these countries. [ABSTRACT FROM AUTHOR]

In March 2020, the COVID-19 pandemic caused a significant economic shock in countries worldwide, negatively affecting every aspect of the world economy. Due to the situation with the COVID-19 pandemic, governments imposed a lockdown on households to slow the spread of the pandemic. It was unknown how long the lockdown could last and how much impact it would have on households and the general government. Household consumption is a specific component of final GDP consumption and generally represents about 60% of GDP. Crises most often affect the individual and manifest in unplanned and unnecessary costs that affect household consumption and savings, and consequently growth and development. Eurostat states that the household savings rate of the European Union (EU) decreased in the third quarter of 2020 but was 4.5% higher than in 2019. This paper aims to analyze the differences in household consumption expenditure and net savings across the EU from 2018 until 2021 and general government consumption expenditure and net savings. In addition, it will compare the differences in household and general government consumption and savings in 2019 and 2020. This paper uses univariate statistical methods to define the differences between the EU member states and their private and public consumption expenditure and net savings. The authors will suggest further research on the topic mentioned above and provide evidence on how households should react to future pandemic situations.

This paper examines the effects of mobile payment (m-payment) adoption on household savings decline in China. Using data from the 2017 China Household Finance Survey, we employ an instrumental variable approach with multiple robustness checks to evaluate the impact of m-payment adoption on household savings rate. Our study discovers that m-payment usage decreases the household savings rate by about 20% points. We also find that, relative to that of rural and older households, the savings of urban and younger households are more significantly influenced by m-payment adoption. The main channels through which m-payment usage affects the household saving rate likely include improved risk sharing, alleviated credit constraint, and enhanced risk tolerance. This paper provides important insights about m-payment adoption and the ongoing household savings decline in China. [ABSTRACT FROM AUTHOR]

In March 2020, the COVID-19 pandemic caused a significant economic shock in countries worldwide, negatively affecting every aspect of the world economy. Due to the situation with the COVID-19 pandemic, governments imposed a lockdown on households to slow the spread of the pandemic. It was unknown how long the lockdown could last and how much impact it would have on households and the general government. Household consumption is a specific component of final GDP consumption and generally represents about 60% of GDP. Crises most often affect the individual and manifest in unplanned and unnecessary costs that affect household consumption and savings, and consequently growth and development. Eurostat states that the household savings rate of the European Union (EU) decreased in the third quarter of 2020 but was 4.5% higher than in 2019. This paper aims to analyze the differences in household consumption expenditure and net savings across the EU from 2018 until 2021 and general government consumption expenditure and net savings. In addition, it will compare the differences in household and general government consumption and savings in 2019 and 2020. This paper uses univariate statistical methods to define the differences between the EU member states and their private and public consumption expenditure and net savings. The authors will suggest further research on the topic mentioned above and provide evidence on how households should react to future pandemic situations. [ABSTRACT FROM AUTHOR]

For exploring key factors affecting farmers’ savings the study was designed in district Kohat (KP, Pakistan). For the purpose of data collection, interview schedule and direct observation was used as a research tools. Through random sampling technique, a sample size of 90 households from 452 farm households were taken. Total consumption expenditures, total income, and land size were the variables which showed significant results. Because their overall p-values indicates significant results at 5% significant value. Results of these variables revealed a positive relationship between household (farmers) savings and total income with coefficient 0.332143 and P-value 0.00*** and land size with coefficient 1823.08 and P-value 0.000*** in the study area. On other hand, total consumption expenditures with coefficient -0.472555 and P-value 0.00*** had a negative association with household savings in the research area. Furthermore, 56% of the farmers having household savings between the ranges of 5,000 to 9,999, PKR while 25% of farmers had household saving from zero to 4,999, PKR. Similarly, the highest 78% of sampled farmers were earning above and 49,999 PKR followed by the farmers (15%) with income from 40,000 to 49,999 PKR. According to this study, small farmers can increase their savings through the provision of off-farm opportunities. To minimizing the expenditures, the small farmers can used better household budget management technique to increase their savings. [ABSTRACT FROM AUTHOR]

This article seeks to explain why households decide to simultaneously hold both credit and savings products. Beyond the arguments of ignorance or behavioural biases commonly used in the literature, our analysis demonstrates that co-holders might be rationally seeking lower interest rates on their consumer credit products. Our analysis reveals that additional savings accumulated before credit uptake, even if not used as a down payment for a debt, reduce the interest rate on credit. [ABSTRACT FROM AUTHOR]

The Malaysian household saving growth has shown weakened patterns from year to year. Low-income level, overspending and black swan economic events result in nosedived household savings. To explain this issue, this study empirically examined factors affecting household savings in Malaysia. The analysis was based on time-series data gathered from World Bank Data, CEIC Data and Department of Statistic of Malaysia from 1970 until 2018. The ordinary least square (OLS) regression analysis was used to examine the significant relationship among dependent variable (household savings, proxy gross domestic savings) and independent variables which consist of interest rate, inflation rate, age dependency ratio, consumption expenditure and income. The findings from this study reveal that the interest rate and household consumption expenditure have significant negative relationships with the household savings, while age dependency ratio, inflation rate and income have insignificant relationships with the household savings.

The macroeconomic stabilization that took place in Russia has led to a partial transfer of household savings from bank deposits to the securities market. This process determines the relevance of creating institutions to minimize the non-market risks of small investors. As global experience shows, among such institutions, the most important one is the compensation fund. The article discusses projects for the creation of a compensation fund in Russia, previously proposed by the Bank of Russia and the National Association of Stock Market Participants (NAUFOR). The results of recalculating the forecast balance of the compensation fund are presented, based on the previously formulated prerequisites of NAUFOR, but also underpinned by the latest quantitative data, which have changed significantly over the past two years as a result of explosive growth of household investments in the securities market. It is shown that in the new conditions it is impossible to ensure the adequacy of financing of compensation funds on the basis of previously proposed sources. The author presents a new approach to the formation of a compensation fund in Russia, which takes into account not only the new Russian realities, but also the existing global experience in the field of creating compensation funds. In the framework of this approach, the author proposes expanding the list of financing sources for the compensation fund. The article provides forecast estimates of the fund balance and ratios of compensation fund adequacy, calculated on the basis of these proposals, which indicate that this model of the compensation fund is economically viable and could be implemented as soon as possible. Further prospects for the development of a national compensation system, which could include compensation funds operating in various segments of the financial market, are considered.

The modern world is characterized by a high degree of digitalization, so citizens have access to an increasing variety of savings options. In just a few clicks, people can purchase shares of the largest companies, invest in real estate rental funds, open deposits in almost any bank, and purchase digital assets. However, financial literacy has not yet reached the level needed to use all financial instruments consciously. Since confidence in the banking and financial system is low, people save in cash, which slows economic growth. The study of various forms of savings and their reliability and availability can increase cashflow from individuals, triggering growth, especially in the current crisis conditions of 2020–2022, with unprecedented sanctions. The purpose of the study is to develop recommendations for the development of modern forms of effective savings for the population under the conditions of a systemic economic crisis. The study uses publicly available data on personal savings rates and relevant scholarly literature and uses the methods of analysis and synthesis, comparison, deduction, and statistical generalizations. In the course of the study, key savings trends and urgent income issues were identified, allowing for the formulation of several recommendations to improve the efficiency of modern savings methods.

The purpose of this paper is to investigate the association between household savings and subjective wellbeing (SWB) using data from the China Household Finance Survey conducted in 2011, 2013, 2015, and 2017. The results indicate that the association between household savings and SWB is nonlinear, showing an inverted U‐shape, which implies that there may be an optimal amount of household savings to maximize SWB. Furthermore, this study explores the heterogeneity of different groups and finds that the optimal amounts of household savings vary among subsamples in terms of region, income, age, and risk attitude. These findings have implications for consumer educators and policymakers when they help consumers to make rational saving decisions. [ABSTRACT FROM AUTHOR]

This study analyses the effectiveness of government incentives on household savings in Hungary prior to the Covid pandemic and the ensuing economic turmoil. Time series pertaining to life insurance, voluntary pension savings, and long-term and short-term government bonds are tested in relation to government incentives. The novelty of this study is the test on complex mix of policy incentives and saving funds. The analysis applies the multiple breakpoint test and OLS regression, based on the behavioural life cycle hypothesis. The conclusion is that in the analysed time period the government incentives had a significant effect and promoted savings behaviour, with the exception of short-term government bonds. [ABSTRACT FROM AUTHOR]

Households play one of the most important roles in the development of any country's economy. These entities can generate savings and transfer them to financial institutions, having a strong impact on the development of both the financial system and the national economy as a whole. The importance of household savings for the creation of favorable investment conditions for, above all, business entities, leads to increased interest of scientists in conducting research in this area. Within the article, the essence of the category "household savings" is analyzed, and some types of such savings are considered. The detailed analysis of scientific concepts to consider the outlined category allowed to identify two approaches used by scientists in detailing its content: macroeconomic -- household savings are considered from the standpoint of the national economy development; microeconomic -- household savings are considered as a financial resource of the household as an economic entity, the mechanisms of their formation and further use are substantiated first. The author's approach to the interpretation of the category "household savings" is also substantiated, namely -- a set of temporarily free financial resources of households, which were formed because of the excess income over expenditures to obtain additional income or further use in the future. Within the article, the essence of organized and non-organized savings of households are considered, their specific features are identified. It is substantiated that organized savings are important for intensifying investment processes in the country. However, their formation is complicated by several different external and internal obstacles. Household savings as an integral part of the financial system and the national economy in general, according to the study, play an important role in economic development. Their formation, involvement, and use are quite complex processes that are difficult to formalize. However, these processes can be regulated to ensure the transformation of household savings into investment resources. This requires the use of the full range of methods, tools, and levers of government regulation in this sphere. [ABSTRACT FROM AUTHOR]

India is having a long-term oriented culture where people are more focused on their future rather than present. Due to this the savings rate in India has always remain at a significant level. India’s savings performance has been quite impressive in a cross-country context. India’s gross domestic savings rate in the recent period is comparable to Indonesia, Thailand and Korea, much lower than that of China, Malaysia and Singapore but much higher than that of many other emerging and advanced economies. India ranked 2nd in terms of gross domestic savings among top 10 economies of the world in the year 2015, just below that of China. The gross domestic savings which stood at around 23 per cent in 1990 has reached around 35 per cent in 2015, well above the world average of 23.5 per cent. Various factors which resulted in an increase in gross domestic savings rate are rapid economic growth, large scale migration of rural population to urban area, Rise in income of government employees after 6th pay commission, persistence of saving habits among households, awareness programs by government and financial institutions etc. Household savings has always remained a major component of gross domestic savings followed by private corporate savings and public sector savings. It was the result of high savings rate that the Indian economy stand strong during the global recession of 2008. During the tenth five year plan i.e. from 2002-2007 the increasing in gross domestic savings was maximum among all. Bank deposits have always remain the most preferred avenue for savings for households. Total deposits in Indian banks crossed Rs100 billion mark in 2017.

Based on precautionary saving motives, this research develops a three-period life-cycle model to manifest the impact of housing prices on household savings in urban China. The theoretical model illustrates that the expected appreciation of housing prices at a household's middle age leads to the increase in household savings at a household's young age. Second, household savings at a household's young age are positively associated with both expected educational and medical expenditures in a household's middle age and pension expenditures at a household's old age. Third, the expected housing prices crowd out educational and medical expenditures at a household's middle age. With the panel data sets of China's 31 provinces during 1996–2016, results suggest that the expected housing prices significantly interact with the current household savings. However, the influence of the expected housing prices on the current household savings is greater than that of the current household savings on the expected housing prices. Third, the expected expenditures of education, medical care and pension fuel up the current household savings. Meanwhile, the housing prices crowd out the expenditures of education, medical care and pension. Finally, data of the Urban Household Survey (UHS) over the period 2002–2007 show that the household head age has an effect of reverse U-shape on household savings. Accordingly, to prevent a housing bubble and promote household consumption, policy makers should curb housing price inflation by enacting appropriate countercyclical housing policies. [ABSTRACT FROM AUTHOR]

There are two unusual and important features in the evolution of the savings rate in Chile. First, the economy increased the average savings rate by 11 percentage points in the period 1985–2013 compared to 1960–1984, mainly due to a large change in private savings rate (10 percentage points), and an additional 1 percentage point from the public sector. The second feature is related to the change in the composition of private savings. After several years of nearly no corporate savings, this component became an important part of total savings reaching an average of almost 10% of Gross National Disposable Income (GNDI) during the period 1986–2012. Our results show that the 1984 tax reform, the boost in the marginal productivity of capital and the deepening of the financial market were the main drivers that explain the dramatic increase in corporate savings. We also found that the reduction in personal income tax after the tax reform and the higher income per capita growth helped to explain the increase in household savings, while the structural balance rule helped to explain the increase in public savings. [ABSTRACT FROM AUTHOR]

System activities to increase the financial literacy of the population, initiated by the Government of Russia about 10 years ago, and various episodic projects implemented by commercial, educational and public organizations form a request for assessing the level of financial literacy and the effectiveness of these measures. First of all, comprehensive, accurate studies are relevant, as they make it possible to identify territorial, socio-demographic, economic and other patterns of changes in the level of financial literacy, as well as the grounds for the success of regulatory activities. The purpose of the article is to study the differentiation of the level of financial literacy by territory, socio-demographic and economic characteristics of the population. To achieve this, the original index methodology for measuring financial literacy according to “knowledge” and “skills” components has been developed by the authors. The sub-indices in subject areas (the sub-indices “income and costs”, “family budget and financial planning”, “savings and deposits”, “crediting”, “investment and taxes”, “insurance and pensions”, “risks and financial security”, “protection of consumer rights”), some particular indices of knowledge and skills, a composite index of financial literacy (range from 0 to 1) have been calculated. The list of measurable elements of financial literacy is compiled according to the model of a financially literate citizen outlined in the “Strategy for increasing financial literacy in the Russian Federation for 2017–2023”, and includes 33 items. The methodology we have developed for the assessment of financial literacy is aimed at the solution of a set of tasks, which include: identification of the key problem areas of financial literacy; determination of groups that effective financial education programs and interventions can be targeted for; identification of preferred forms and methods of providing information on the topics of interest to improve financial literacy; study the features of financial literacy in terms of sociodemographic and economic factors. The empirical foundation of the study was the data of the sociological survey “Financial literacy”, conducted the authors in 2018 in the territory of 4 regions of the North -Western Federal District (Kaliningrad, Pskov, Arkhangelsk and Vologda regions). When choosing the regions, the presence of regional programs to improve financial literacy and the level of per capita cash income of the population was taken into account. It has been revealed that the composite index of financial literacy of the population was 0.396; the maximum value of the index is observed in Arkhangelsk region (0.434), the minimum – in Vologda region (0.376). The level of financial literacy and its individual components has been differentiated according to the territorial basis, socio-demographic and economic characteristics of the population. A stable framework of subject areas in which the population implements literate skills has been highlighted; it includes the family budget and financial planning, the use of savings and loans, financial security. The dependence of financial literacy and its individual components on the level of cash incomes, which is strengthened in the context of the implementation of regional programs to improve the financial literacy of the population, has been determined. It is shown that, regardless of the region, private knowledge indices are higher than private skill indices, which indicates the presence of factors that impede the transformation of existing knowledge into practical actions of the population in the financial market. We strongly believe that it is caused by the presence of particular attitudes existed among the populating in the field of financial literacy. Therefore, at further stages of the comprehensive, accurate analysis, we intend to study a special component of financial literacy – “attitudes”, which will determine the value-motivational and psychological aspects that mediate the development of financial knowledge and skills by the populat ion. [ABSTRACT FROM AUTHOR]

An employee capital plan (Polish acronym: PPK) is a private long-term saving system aimed at boosting the financial security of Poles. The aim of this paper is to discuss the impact of the PPK program on the level of houshold savings. In this context, the main focus is placed on the future level of employee participation in the program. The article presents the construction of similar programs in selected countries and draws attention to the low level of confidence in voluntary schemes for retirement. The author notes that the real level of savings is clearly lower than the declared. [ABSTRACT FROM AUTHOR]

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Highlights • We study the short-term effects of the 2011 uprising in Egypt on household behaviour. • We measure political instability by analysing the number of killed at protests. • Households living in close proximity to violence spend less on health and save more. • Affected households invest more in education, especially in sons' tertiary education. • Households investing more in education were optimistic after the regime change. Abstract Using representative household survey data, we study the short-term effects of the 2011 Egyptian uprisings on household behaviour in terms of education and health expenditure as well as savings. We construct a measure of political instability by analysing the number of fatalities during political protests throughout the country. Difference-in-Difference estimations show that affected households increased spending on education, especially on their sons' higher education. The increase in education expenditure is particularly prominent in areas where households were in favour of a regime change. We argue that after the fall of Mubarak those households had a positive outlook towards the future, with better labour market prospects, and therefore invested more in their sons' education. At the same time, households decreased spending on health and increased savings, which can be interpreted as precautionary behaviour. Our results are robust to placebo tests, excluding Cairo, spillovers and alternative ways of measuring political instability. [ABSTRACT FROM AUTHOR]

• Rural households in China exhibit active saving behavior. • There are complex impacts of internet use on rural household savings. • Internet use in rural areas significantly promotes rural household savings. • The joint action of traditional and internet financial services are more likely to increase the savings. Based on the 7825 farmer households from the 2016 China Labor Dynamic Survey Database (CLDS), this study employs the Tobit model and endogenous switching model to empirically investigate the impact of Internet use on rural household savings. This study finds that: (1) Internet use in rural areas significantly promotes rural household savings. (2) Farmers with Internet use and close to the bank, may have higher saving rates than farmers with Internet use and far from the bank. (3) Rural household savings are also closely associated with the characteristics of the household head, household members, and the geographic location of the village. [ABSTRACT FROM AUTHOR]