Analyzing The Importance of Saving as A Financial Strategy to Improve Individual Economic Well-Being

Abstract

The purpose of this paper is to determine how saving as an economic measure affects welfare improvements of individuals. The study findings show that saving behavior is positively and significantly related to well-being at an individual level and in this regard both the importance and the usefulness of saving are critical. However, it is worth noting that the degree of influence saving behavior has on individual well-being is quite moderate which indicates that individual economic well-being is a profile that comprises several dimensions. This paper also emphasizes how financial education programs should not concentrate solely on savings strategies but rather incorporate additional strategies of increasing comprehension of the importance and ability to save. This study seeks to find ways of improving the existing level of economic well-being at the individual level.