Title: Determinants of personal saving: a study of salaried individuals in Thailand

Authors: Preecha Swasdpeera; I.M. Pandey

Addresses: International Association of Registered Financial Consultants (USA), 125/151 Soi Ramindhra 103/3, Ramindhra Road, Khannayao District, Bangkok 10230, Thailand. ' Department of Financial Studies, University of Delhi, South Campus, Benito Juarez Road, New Delhi 110021, India

Abstract: This study identifies factors that influence the saving behaviour of salaried individuals in Thailand. The results of the univariate and multivariate analyses show that income, age, marital status, number of children and educational level have a positive influence on the individuals' average saving. The study indicates that those individuals who do not save and are not willing to save have a more indifferent attitude towards the factors of willingness to save than the individuals who save or are willing to save. The logit regression results also show that the odds of saving willingness are positively influenced by gender, other financial dependents and household income. The proposed model of influence on saving suggests that an individual will take a series of actions on saving if he/she has a surplus portion of income, a concern for future spending and a trusted saving product.

Keywords: personal savings; willingness to save; life cycle hypothesis; permanent income hypothesis; odd ratio; logit; saving models; Thailand; saving behaviour.

DOI: 10.1504/AAJFA.2012.046347

Afro-Asian Journal of Finance and Accounting, 2012 Vol.3 No.1, pp.34 - 68

Published online: 06 Apr 2013 *

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