Determinants of Rural Household Saving in Tanzania

This paper examines saving motives of rural household in Tanzania. Descriptive and econometric method of analysis is used to analyse data from 810 households gathered through structured questionnaire. Further, it employs logistic regression to determine association between saving motives and demographic characteristics. Triangulation of data is done through focus group discussion to verify data collected via the survey questionnaire. Data was collected in thirteen districtsin quasi-randomizedzones. Accordingly, of the two categories of saving motives, majority of rural household prefer motives under the livelihood category. As for twelve motives analysed education motive is top priority saving motive. Further education level is the only independent variable that increases the logit of the dependent variable that means it increases the odds of an individual to choose livelihood saving motives. The study found majority of rural households arerigid towards changing saving motives.