Main Article Content

Enkeleda Lulaj
Blerta Dragusha
Donjeta Lulaj
Vjollca Rustaj
Albiona Gashi

Keywords : Savings,, financial behavior, multiple regression analysis, households, growth and decline economics

To reflect the financial situation of households, especially for emergencies, the main purpose of this research is to analyze financial behavior in relation to savings. This research explains the interaction of minimum savings rules and committed forms of saving, which means that the use of personal budgets depends on financial behavior due to insecurity and the financial situation of families. The research is consistent with some empirical findings on financial behavior in relation to savings, which affect the growth or decline of the economy, because the lower the well-being of families the lower the economic growth or vice versa. The validation of the hypotheses was realized through the analysis of field findings, using the econometric model of savings in relation to financial behavior through factor analysis, reliability analysis and multiple regression analysis. The main finding of this research is the lack of financial behavior to save for emergencies. These findings are important in order for households to be aware of financial behavior in relation to savings, because there is no emergency fund to cover their needs.

Article Details

How to Cite
Lulaj, E., Dragusha, B., Lulaj, D., Rustaj, V., & Gashi, A. (2021). HOUSEHOLDS SAVINGS AND FINANCIAL BEHAVIOR IN RELATION TO THE ABILITY TO HANDLE FINANCIAL EMERGENCIES: CASE STUDY OF KOSOVO. Acta Scientiarum Polonorum. Oeconomia, 20(1), 35–48.

Aguiar, M., Amador, M. (2011). Growth in the Shadow of Expropriation. The Quarterly Journal of Economics, 126 (2), 651–697, (Crossref)

Bacha, E.L. (1990). A three-gap model of foreign transfers and the GDP growth rate in developing countries. Journal of Development economics 32 (2), 279–296. (Crossref)

Bai, A., Hira, S., Deshpande, P.S. (2015). An Application of Factor Analysis in the Evaluation of Country Economic Rank. Procedia Computer Science, 54, 311–317, (Crossref)

Bajtelsmit, V., Bernasek, A., Jianakoplos, A. (1999). Gender differences in defined contribution pension. Financial Services Review, 8 (1), 1–10, (Crossref)

Baker, H.K., Filbeck, H., Ricciardi, V. (2017). Financial Behavior: Players, Services, Products, and Markets (Financial Markets and Investments). Oxford University Press, Oxford. (Crossref)

Beck, T., Levine, R., Loayza, N. (2000). Finance and the sources of growth. Journal of Financial Economics, 58 (1–2), 261–300, (Crossref)

Beck, T., Demirguc-Kunt, A., Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12, 27–49, Bernheim, (Crossref)

D., Garrett, M. (1996.) The determinants and consequences of financial education in the workplace. NBER Working Paper, 5667, 1–54, (Crossref)

Bremer, M. (2012). Multiple linear regression-Math 261A. Reliawiki. Retrieved from [accessed 20.11.2020].

Callen, T., Thiman, Ch. (1997). Empirical Determinants of Household Saving: Evidence from OECD Countries. International Monetary Fund, Washington. (Crossref)

Campbell, Th. (1996). Investigating structures underlying relationships when variables are not the focus: Technique and other techniques. Advances in Social Science Methodology, 4, 207–218.

Castellani, G., DeVaney, A.Sh. (2001). Using credit to cover living expenses: a profile of a potentially risky behavior. Family Economics and Nutrition Review, 13 (2), 12.

Chowdhury, A. (2004). Private Savings in Transition Economies: Are There Terms of Trade Shocks? Comparative Economic Studies, 46 (4), 1–35, (Crossref)

Chowdhury, A. (2015). Terms of Trade Shocks and Private Savings in the Developing Countries. Journal of Comparative Economics, 43 (4), 1122–1134. (Crossref)

Collins, J. M., Gjertson, L. (2013). Emergency Savings for Low-Income Consumers. Focus, 30 (1), 12–17. Cronbach, L., Gleser, G. (1959). Interpretation of reliability and validity coefficients: Remarks on a paper by Lord. Journal of Educational Psychology, 50 (5), 230–237, (Crossref)

Deaton, A. (1992). Understanding Consumption. Clarendon Press, Oxford. (Crossref)

Dupas, P., Robinson, J. (2013). Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya. American Economic Journal: Applied Economics, 5 (1), 163–192, (Crossref)

Fehr, D., Hishigsuren, G. (2006). Raising capital for microfinance: sources of funding and opportunities for equity financing. Journal of Developmental Entrepreneurship, 11 (2), 133–143, (Crossref)

Feldt, L. (1969). A test of the hypothesis that Cronbach’s alpha or Kuder Richardson coefficient twenty is the same for two tests. Psychometrika, 34, 363–373 (1969). (Crossref)

Ferraro, F., Su, P. (1999). Financial strain, social relations, and psychological distress among older people: A crosscultural analysis. The Journals of Gerontology Series B: Psychological Sciences and Social Science, 54B (1), 3–15, (Crossref)

Fry, T., Mihajilo, S., Russell, R., Brooks, R. (2008). The factors influencing saving in a matched savings program: Goals, knowledge of payment instruments, and other behavior. Journal of Family and Economic, 29, 234–250. (Crossref)

Furnham, A. (1999). The saving and spending habits of young people. Journal of Economic Psychology, 20 (6), 677–697, (Crossref)

Gokhale, J., Kotlikoff, L. (1999). The Impact of Social Security and Other Factors on the Distribution of Wealth. London School of Economics – Centre for Labor Economics. Retrieved from [accessed 20.11.2020]. (Crossref)

Gómez, F. (2009). Educación financiera: retos y lecciones a partir de experiencias representativas en el mundo. Proyecto Capital enbreve, 10, 1–7. Retrieved from [accessed 22.11.2020].

Gustman, L.A., Steinmeier, Th.L. (2000). Retirement in Dual-Career Families: A Structural Model. Journal of Labor Economics, 18 (3), 503–545, (Crossref)

Hebbel, Sh.H., Webb, S.B., Corsetti, G. (1992). Household Saving in Developing Countries: First Cross-Country Evidence. World Bank Economic Review, 6 (3), 529––547. (Crossref)

Henson, R., Roberts, J.K. (2006). Use of Exploratory Factor Analysis in Published Research Common Errors and Some Comment on Improved Practice. Educational and Psychological Measurement, 66 (3), 393–416, (Crossref)

Hilgert, M.A., Hogarth, J.M., Beverly, S. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, July, 309–322,

Hogarth, J. M., Anguelov, C. (2003). Can the poor save? Journal of Financial Counseling and Planning 14 (1), 1–18.

Jacobs-Lawson, J.M., Hershey, D. (2005). Influence of future time perspective, financial knowledge, and financial risk tolerance on retirement saving behaviors. Financial Services Review, 14, 331. Retrieved from [accessed 19.11.2020].

Jamieson, T., Jamieson, P. (2009). Ministry and Money: A Practical Guide for Pastors. John Knock Press, Kentucky, Louisiana.

Karlan, D., Morduch, J. (2009). Access to Finance. [In:] D. Rodrick, M.R. Rosenzweig (Eds), Handbook of development economics, vol. 5. North Holland, 1–86. Retrieved from [accessed 20.11.2020].

Kieffer, K.M., Kevin, M. (1999). An introductory primer on the appropriate use of exploratory and confirmatory factor. Research in the Schools, 6 (2), 75–92.

King, G., Levine, R. (1993). Finance and growth: Schumpeter might be right. Quarterly Journal of Economics, 108 (3), 1–50, (Crossref)

Klapper L., Laeven L., Rajan R. (2006). Entry Regulation as a Barrier to Entrepreneurship. Journal of Financial Economics, 82 (3), 591–269, (Crossref)

Kleinman, G., Anandarajan A., Lawrence K. (1999). An analysis of the move toward defined contribution pension plans: are the rewards commensurate with the risks? Journal of Pension Planning and Compliance, 25, 61–89.

Kotlikoff, J., Morris, N. (1989). How much care do the aged receive from their children? A bimodal picture of contact assistance. [In:] D.A. Wise (Ed.) The Economics of Aging. University of Chicago Press, Chicago, IL.

Lulaj, E. (2020). Budget education and management a necessity for Well-being and financial stability: Cluster & MDS analysis. International Journal of Financial Research 11 (6), 348–364. (Crossref)

Lusardi, A., Mitchelli, O.S. (2007). Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education. Business Economics, 42 (1), 35–44, (Crossref)

Mandell, L., Klein K.L. (2009). The Impact of Financial Literacy Education on Subsequent Financial Behavior. Journal of Financial Counseling and Planning, 20 (1), 15–24.

Meier, S., Sprenger, C. (2008). Discounting financial literacy: Time preferences and participation in financial education programmers. Journal of Economic Behavior and Organization, 95, 159–174. (Crossref)

Misztal, P. (2011). The Relationship between Savings and Economic Growth in Countries with Different Level of Economic Development. Finansowy Kwartalnik Internetowy e-Fínanse, 7 (2), 17–29.

Morin, J.H., Ralyté, J., Snene, M. (2010). Exploring Services Science. [In:] First International Conference, IESS 2010. Springer, February 17–19, Geneva, Switzerland, (Crossref)

Nageeb, A. (2011). Learning Self-Control. The Quarterly Journal of Economics, 126 (2), 857–893, (Crossref)

Niculescu, A.I., Mihaescu, M. (2014). Modelling the Impact of Economic, Demographic and Social Determinants on Household Saving Rate in the Former Socialist Countries (Central and Eastern Europe). Procedia Economics and Finance, 10, 104–113, 10.1016/S2212-5671(14)00283-4 (Crossref)

Robb, A.C., Woodyard, A. (2011). Financial Knowledge and Best Practice Behavior. Journal of Financial Counseling and Planning, 22(1), 36–46. (Crossref)

Rooij, M., Lusardi, A., Alessie, R. (2011). Financial Literacy, Retirement Planning and Household Wealth. NBER Working Paper, 313, 1–54. (Crossref)

Scholtz, J. (1992). A direct examination on the dividend clientele hypothesis. Journal of Public Economics, 49 (3), 261–285, (Crossref)

Schreiner, M., Sherraden, M. (2007). Can the Poor Save? Saving and Asset Building in Individual Development Accounts. Transaction Publishers, New Brunswick, NJ.

Sherraden, M. (1991). Assets and the Poor: A New American Welfare Policy. Center for Social Development Research, M.E. Sharpe, Inc., New York. Shin, S.H., Kim, K.T. (2018). Perceived income changes, saving motives, and household savings. Journal of Financial Counseling and Planning, 29 (2), 396–409. (Crossref)

Sonuga, J., Webley P. (1993). Children’s saving: A study in the development of economic behavior. Journal of Economic Psychology, 15 (2), 375–378.

Stephen, M.A. (1988). Relational concepts in psychoanalysis: An integration. Harvard University Press, Cambridge.

Sterns, L. (1998). The decision to retire or work. [In:] K.W. Schaie, C. Schooler (Eds), Impact of work on older adults. Springer, New York.

Tampis, R.L., Urrutia, J.D. (2017). Regression analysis of the economic factors of the gross domestic product in the Philippines. Journal of Fundamental and Applied Sciences, 9 (7S), 190–291.

Thompson, B., Daniel, L.G. (1996). Factor analytic evidence for the construct validity of scores: A historical overview and some guidelines. Educational and Psychological Measurement, 56 (2), 197–208. Retrieved from [accessed 22.11.2020]. (Crossref)

Wiatrowski, W. (1993). Factors affecting retirement income. Monthly Labor Review, 16 (3), 25–35. Retrieved from [accessed 22.11.2020].

Zhuk, M. (2015). Macroeconomic Determinants of Household Savings in Ukraine. Economics and Sociology, 8 (3), 41–54, (Crossref)

Zsuzsannaa, T., Liviu, M. (2012). Multiple regression analysis of performance indicators in the ceramic industry. Procedia Economics and Finance, 3, 509–514. (Crossref)



Download data is not yet available.