INFLUENCE OF PEER PRESSURE ON INDIVIDUAL SAVINGS BEHAVIOUR

ECONOMICS

For a very long time, the fields of economics, psychology, and sociology have known the importance of individual savings behaviour in determining financial security and well-being. Accepted in its significance, grasping just how people save, and the larger complex systems that can explain saving behaviour remains a challenging and varied task. Traditional economic theories assume that people make rational decisions based on cost-benefit analysis. The fact remains, however, that a host of psychological, socio-economic, and cultural variables do, in most cases, take their toll on the saving pattern accumulation. This paper, therefore, seeks to explore the said intricate interplay within which individual savings and spending behavior is embedded. This information was collected using a structured questionnaire, analysis of which is done later in the paper. In this research, specific peer group saving practices were to be found out, which would help this paper in drawing similarities and dissimilarities of similar categories in the divers' peer dynamics. The comprehensive approach pursued in this study not only furthers the understanding of individualistic ways of making decisions related to finance but also provides worthwhile advice for encouraging financial well-being under a range of social circumstances.

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