Exploring the Economic Behavior of Households of Barisal District

The harmony of the financial system is influenced by the financial status and behavior of its economic entities. Understanding the economic behavior of the inhabitants is important for the successful derivation of the scope of the rural economy. This paper aims to explore the economic behavior of the households, the motives for their formation, the saving and borrowing practices of households and the grounds for doing so and also aims to find out how households review their present economic position. The study employing a questionnaire survey reveals that households do not have any preplanned budget to spend their earnings; they do not prefer to take loan or if they do, in case, most of them prefer from Micro credit institutions rather than Banks. Furthermore, households prefer to save in form of cash and keep it in home and their borrowing intention is influenced by their future savings tendency, occupation and family members