The Influence of Financial Factors on Motivation to Save among Poor Individuals

This cross-sectional study of N = 194 low-income individuals compared socio-demographic and finance-related factors between those who reported having a motivation to save and those who did not report having some motivation to save. Theories and factors related to saving are reviewed. Logistic regression tests found that paying rent with cash, using voluntary income tax assistance to prepare taxes, and witnessing parents save money through financial institutions were positively associated with the likelihood of having a motivation to save. Overall, the study supports the significance of financial socialization and institutional mechanisms of saving. Discussions are directed toward efforts to help lower income families save.