| Summary: | Low-income households are those with lower incomes than most households in the region. In Malaysia, a low-income household earns less than RM 4,500 per month. Savings issues for low-income households are rarely discussed. This is because, logically, how can these low-income households save when their money is barely enough to cover their basic needs? Nonetheless, despite limited research, there is evidence that low-income households save. This study aims to identify the type of savings of low-income households. According to this study, low-income households do save. The methodology used in this study is multinomial logistic regression. The result of the study shows that strata, household size, number of income earners, the ability of households to save, and perception of households in access to higher education are the factors influencing low-income households' savings. This study implies that low-income households face numerous obstacles that make saving difficult, including low-income levels, limited access to financial products and services, and a lack of financial literacy. The term savings is used to describe the sum of money that has been set aside for some unspecified purpose. Money, investments, and other forms of liquid capital are all acceptable. Whether for a down payment on a house, a business start-up, or retirement, savings plays a critical role in a person's finances. Lack of discretionary income is a major obstacle to saving. Many people struggle to save money because they have a lot of debt, low wages, and no idea how to manage their finances. It's also possible. © 2018 Malaysian Consumer and Family Economics Association (MACFEA).
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