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Abstract
The household sector represented by individuals occupies a strategic place among various economic units in a country as it contributes substantially to the domestic savings efforts. An understanding of the savings behavior of this sector is of crucial importance in devising appropriate savings policies. The word savings here implies the residual amount that is available for a person for investment after meeting all his consumption expenses and repayment of loans. The economic system depends on an adequate supply of capital from private investors. The savings of individual investors are the main source of capital investment for business expansion. The future of the free enterprise system depends mainly, and almost exclusively on the continued ability and willingness of individuals with larger incomes to provide the capital and funds needed to finance the growth.