Abstract:
Savings and Investment culture is the basics of internal funds mobilization. It remains the push behind economic growth. Ghana’s economic recoveryprogramme since 1983 had a major look at savings and investments as one of the fundamental tool to reach stability and development. Nonetheless, in spite of all the efforts, the country still lacks the adequate funds generated by savings and investment to embark on its economic growth. Conceptually, this study is conducted to find out the real causes of savings and investments behavior in Ghana. It will include the evolution of savings and investment in Ghana and analysis of Ghanaians behavior towards it.
Methods used in collecting data in this project include judgmental, voluntary and quota sampling. A total of 360 respondents consisting of individuals and bank officials in the various towns in Kumasi central were selected using a combination of the sampling techniques indicated. These respondents were reached with the aid of questionnaires and interviews.
Description:
A savings and investment culture is the first stage of capital formation. Once an individual receives income, there is either of two choices to make; to spend or to save it. Spending it has immediate satisfaction whiles saving it has future satisfaction and increase in value if well invested. Individual saving is spending less on consumption than available from one's disposable income. What an individual saves can then be held in many ways. It can be deposited in a bank, put into a pension fund, used to buy a business, pay down debt, or kept under the mattress, in which case as well as saving, they would be investing. However, many people will be saving at a level which exceeds their spending on physical investment at all.
