Study On Evaluating Cultural Factors Influencing Savings & Investment Patterns
Mr. Nikhil Dilip Karkhanis
Head, Department of Accountancy
Mulund College of Commerce (Autonomous),
Mulund Vanijya Mahavidyalaya Marg,
Mulund, Mumbai- 400 080
Abstract :
The study examines how cultural factors influence savings and investment patterns in India, where financial decisions are intricately linked to social and cultural norms. Cultural influences, including religion, family dynamics, geographic location, and linguistic backgrounds, play a pivotal role in shaping individuals’ financial behavior. This research specifically explores these factors by analyzing primary data from 170 respondents in the Thane-Mumbai region, representing the lower-middle, upper-middle, and affluent classes. Secondary data from various Indian states complement this primary data to provide a more comprehensive understanding.
Key cultural factors such as religious beliefs, which may discourage interest-based earnings, family structures that dictate housing preferences, and gender norms that influence financial autonomy, are central to this study. The research also incorporates typology from psychology, allowing for a nuanced examination of individual and group behavior in the context of financial decisions.
The findings highlight the complex interplay of cultural diversity in influencing savings and investment patterns. Cultural values and traditions are not only deeply embedded in financial decision-making but also vary significantly across different social strata. This cultural heterogeneity emphasizes the need for financial institutions to tailor their products and services to align with the unique cultural preferences of different communities.
The research concludes that while culture is a defining factor in financial behavior, awareness and education regarding savings and investment are crucial to enhancing economic prosperity. By promoting informed financial decision-making, capital can be effectively utilized to create further economic growth, benefiting society as a whole.
Keywords: Cultural Factors, Savings Patterns, Investment Decisions, Indian Society
DOI link – https://doi.org/10.69758/GIMRJ/2408II07V12P0004
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