EXPLORING HOUSEHOLDS’ FINANCIAL PLANNING: A QUALITATIVE STUDY IN PAKISTAN

Abstract

The aim of this study is to investigate the factors that influence household financial planning in Punjab, Pakistan, as well as how Pakistani households carry it out. It contributes to the body of knowledge on household financial planning in Pakistani cultural contexts, norms, and values. To achieve the objective, study employs qualitative research methods. Purposive sampling technique is used for selection of respondents. A total of 38 Semi-structured interviews are conducted via telephone. Thematic analysis is performed for data analysis. Results found demographics (income level, source of income, number of family members, having kids and age) and macro-economic factor (inflation) as major determinants of the household financial planning. Results found that household follow mental accounting while planning. Results offer valued insight for financial institutions to tailor financial education programs, policy makers to develop appropriate policies that support better financial decision making, and households themselves for their financial well beings. Despite its valuable contributions, study has certain limitations and future research directions.