Cash management and savings culture in saccos in Mayuge district:

Abstract

This study examined the effect of cash management on savings culture. The study was guided by the following objectives notably; to examine the effect of cash planning on savings culture; to assess the effect of cash control on savings culture; and to examine the effect of liquidity management on savings culture. The study used a cross sectional research design, and a quantitative approach. Data were collected from 50 active SACCOS as a target population with the accessible unit of inquiry being 132 employees consisting of branch managers, loan officers, and members. Data were collected with the aid of closed ended questionnaire and Statistical Packages for Social Sciences was employed for analyzing data from which frequency tables, descriptive statistics (mean and standard deviation), reliability, validity, correlation, and regression results were obtained. The study findings revealed that there is a positive and a significant effect of cash planning on savings culture; cash control on savings culture; and liquidity management on savings culture. The study, recommends that efforts to improve savings culture depend on cash management (cash planning, cash control, and liquidity management). Finally, the study concludes that there is a strong predictive power that the dimensions of cash management contribute towards enhancing saving culture in SACCOS in Mayuge District.