Understanding savings behavior in Armenia: A descriptive analysis

Document Type : Review Article


1 PhD Candidate in Business Administration, University of Pecs, Pecs, Hungary

2 Policy Expert, Central Bank of Armenia, Yerevan, Armenia


Using the data of the second wave of Armenia’s Financial Capability Barometer, this research analyzes the factors influencing people’s savings behavior in Armenia. Based on a total sample size of n=1447, the results show significant differences in people’s savings behavior based on geographical, demographic, and social characteristics. People in different Armenian regions display different savings behaviors, and those living in rural areas save more than their compatriots living in urban areas or the capital. The results also show that gender, generation, educational level, and marital status are important in people’s savings decision-making. In addition, those who receive seasonal incomes from agriculture, tourism, or remittances, exhibit better savings behaviors. Employment and income levels showed no significant effect. Moreover, a simple linear regression shows that savings knowledge and savings attitude are positively related to people’s savings behavior, yet savings attitude shows a stronger influence than savings knowledge. This research work provides several policy implications and provides important indications to improve people’s savings behavior in Armenia.


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