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Socio-Demographic Impacts on the Personal Savings Portfolio Choice: A Decision Tree Approach

Author

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  • Milijana Novovic Buric

    (University of Montenegro, Montenegro)

  • Milan Raicevic

    (Lovcen Osguranje AD, Podgorica, Montenegro)

  • Ljiljana Kascelan

    (University of Montenegro, Montenegro)

  • Vladimir Kascelan

    (University of Montenegro, Montenegro)

Abstract

Insufficiently developed financial system, poor standard of living and inappropriate education of citizens on the saving products, lead to low level of investment in the financial market of developing countries. In this paper special attention is paid to examining the socio-demographic profile of Montenegrin citizens that invest their funds in some of the offered form of savings, as well as examining main factors that restrict their investment. For this purpose, data collected through the survey of Montenegrin citizens were processed using Decision Tree method. Survey results have shown that there is a low level of savings, as well as that citizens prefer deposits and life insurance products rather than pension plans and debt securities. Also, the results indicate that the main causes of the current state of savings in Montenegro are low standard of living, citizens´ poor awareness and the financial system which causes the insufficiently attractive supply of savings.

Suggested Citation

  • Milijana Novovic Buric & Milan Raicevic & Ljiljana Kascelan & Vladimir Kascelan, 2022. "Socio-Demographic Impacts on the Personal Savings Portfolio Choice: A Decision Tree Approach," International Journal of Business Analytics (IJBAN), IGI Global, vol. 9(1), pages 1-23, January.
    • Handle: RePEc:igg:jban00:v:9:y:2022:i:1:p:1-23
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    References listed on IDEAS

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    1. A Börsch-Supan & A Brugiavini, 2001. "Savings: the policy debate in Europe," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 17(1), pages 116-143, Spring.
    2. MR Rosenzweig, 2001. "Savings behaviour in low-income countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 17(1), pages 40-54, Spring.
    3. Subir Sen & S Madheswaran, 2013. "Regional determinants of life insurance consumption: evidence from selected Asian economies," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 86-103, November.
    4. Marianna Brunetti & Costanza Torricelli, 2010. "Population age structure and household portfolio choices in Italy," The European Journal of Finance, Taylor & Francis Journals, vol. 16(6), pages 481-502.
    5. Lugauer, Steven & Ni, Jinlan & Yin, Zhichao, 2019. "Chinese household saving and dependent children: Theory and evidence," China Economic Review, Elsevier, vol. 57(C).
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    1. Milena Buric & Milijana Novovic Buric & Andjela Jaksic Stojanovic & Ljiljana Kascelan & Dragica Zugić, 2022. "Sustainability of Online Teaching: The Case Study Mother Tongue Spelling Course at Montenegrin Universities," Sustainability, MDPI, vol. 14(21), pages 1-27, October.

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