Many Bahamians are known to be spenders rather than savers; with a large portion of residents living “pay-check to pay-check1”. It is generally thought that Bahamians spend more than they earn by obtaining loans. It is also speculated that the younger generation feel that they do not need to save right now in expectations of a higher job income in the future. Older persons tend to rely on social security programs such as the National Insurance2 in the Bahamas. Despite the fact that the Bahamas is one of the wealthiest countries in the Caribbean, the savings rate is low. Therefore, the purpose of this study was to examine the correlation between the independent variables: income, credit availability, financial education, interest rates, and culture, and the dependent variable: savings among the working class in New Providence, Bahamas3. With the use of regression analysis, it was found that financial education and access to credit has a relationship to savings. Also, it was found that culture plays a role in the saving rate.

Many Bahamians are known to be spenders rather than savers; with a large portion of residents living “pay-check to pay-check1”. It is generally thought that Bahamians spend more than they earn by obtaining loans. It is also speculated that the younger generation feel that they do not need to save right now in expectations of a higher job income in the future. Older persons tend to rely on social security programs such as the National Insurance2 in the Bahamas. Despite the fact that the Bahamas is one of the wealthiest countries in the Caribbean, the savings rate is low. Therefore, the purpose of this study was to examine the correlation between the independent variables: income, credit availability, financial education, interest rates, and culture, and the dependent variable: savings among the working class in New Providence, Bahamas3. With the use of regression analysis, it was found that financial education and access to credit has a relationship to savings. Also, it was found that culture plays a role in the saving rate.