DIGITAL TECHNOLOGY USE, MODE OF SAVING, DISPOSABLE INCOME AND SAVING AMONG HOUSEHOLD HEADS IN RURAL AREAS OF UGANDA

Background: Savings can be one of the channels to fight poverty among people living in rural areas. Saving is an important macroeconomic variable that can promote economic development through improving the country’s gross domestic product. This study investigated how digital technology use, mode of savings, disposable income influences the saving of the household head in rural areas of Uganda. Methodology: FinScope 2018 secondary dataset was used. A sample of 578 household heads living in rural areas and available during the interview were selected for this study. A binary logistic regression model was adopted. Results: Results show that household heads with some primary (not P.7) were 1.872 (OR=1.872, p=0.029, CI=(1.064-3.295)), some secondary completed (not P.6) were 2.391 (OR=2.391, p=0.017, CI=(1.166-4.902)), and completed P.7 were 2.365 (OR=2.365, p=0.019, CI=(1.150- 4.863)) times more likely to save compared to those who had never gone to school respectively. Again, household heads who had disposable income were 2.486 times more likely to save compared to those who never had (OR=2.486, p=0.000, CI= (1.694-3.649)). With the mode of savings, household heads who were saving with village savings and loan associations (VSLA) were 5.897 times more likely to save compared to those who used banks. Also, household heads who had access to mobile phones were 1.696 times more likely to save compared to those who had access to computers (OR=1.696, p=0.066, CI= (0.966-2.977)). Conclusions and recommendations. Education level, disposable income, VSLA, and access to mobile phone support household head savings in rural areas. Financial and digital education should be encouraged to improve the saving culture among people in rural areas