Determinants Of Household Saving In Harbin

The importance of savings as a means to provide household financial security has been widely recognized by numerous researchers and practitioners. Household saving is important because it affects a family’s level of living, emergency reserves, and the ability to meet financial goals such as making purchases, purchasing a house, etc. Saving out of current income is necessary for retirement security, for helping renters become homeowners without excessive risks, and for dealing with emergency situations.China’s saving rates are among the highest in the world, and it has attracted much attention. Both private sector analysts and policymakers have attempted to trace the causes of China’s high savings rate and to predict how long it will last. This study aims to investigate the determinants of saving behaviour in China. There are at least two reasons why it is important to analyse the determinants, which influence on household saving behaviour. First, analysing the factors why households save will enable us to understand better the saving behaviour of households, differences among households in their saving rates, past and future trends in the household saving rate, and so on. Secondly, analysing the factors that influence the level of household saving will shed light on which economic model is of greater applicability in the real world.On the first step of this study we collected relevant literature about previous research, then we conducted survey research, where we used questionnaires to collect information from individuals. Data were drawn from 1118 respondents through a field survey using the random stratified sampling technique. The survey was conducted in September 2014. We used statistical analysis for understanding relationship between income and savings, and age and savings. The empirical analys includes descriptive statistics, reliability, validity, correlation, partial correlation and regression analysises.This paper provides new empirical evidence on the income and age in explaining variation in household saving in China. It was concluded that income and age have significant influence on savings for durable good, buying a house, and future expenses, but savings for a rainy day are not related with income or age.