SOURCE:

Faculty: Management Sciences
Department: Co-opreative Economics And Management

CONTRIBUTORS:

Ezema, F. S.
Akubuilo, C. J. C.

ABSTRACT:

This study examined the effect of household characteristics on savings behaviour among members of farmers multipurpose cooperative societies (FMCS) in Enugu State. The objectives of the study were to determine major socio- economic factors that influence savings behaviour of members of FMCS, to compare motives and uses of savings of members of FMCS and non- FMCS members, to determine the influence of family life cycle and age of members on savings behaviour among members of FMCS. The area of study was Enugu State where 540 out of 23,120 active FMCS members (360 FMCS members and 180 non- FMCS members) were selected as the sample size. Questionnaires were distributed to these sample size randomly selected from the three senatorial zones of Enugu State. Multiple regression model, one-way ANOVA and t- test were employed to test the four hypotheses of the study. Findings from the study showed that dependency ratio, educational qualification, household size, annual income, marital status, employment status and inheritance of income generating asset were critical household characteristics that influence the amount of savings made by members of FMCS. It was also discovered that motives and uses of savings of members of FMCS are significantly different from motives and uses of savings of non- FMCS farmers. The study, therefore, recommends that non- FMCS farmers should be encouraged to join/form FMCS so as to improve on their savings, improve their farming operation and members of FMCS are enjoined to maintain a manageable family size to be able to make more savings in the cooperative (FMCS).