The Impact of Regular Saving Through Village Saving and Loan Associations (VSLAs) on Household Income Levels and Welfare in Bushenyi-Ishaka Municipality, Bushenyi District, Uganda

Abstract

This study investigates the effect of regular saving through Village Saving and Loan Associations (VSLAs) on household income levels and overall welfare in rural communities. Using a mixed-methods approach, data were collected from 258 VSLA members through structured questionnaires and in-depth interviews to capture both quantitative trends and qualitative insights. The findings indicate that consistent participation in VSLA savings schemes significantly enhances household income, enabling members to engage in better financial planning, support educational needs, manage emergencies, and improve overall welfare. Additionally, savings through VSLAs promote a culture of financial discipline, collective responsibility, and community solidarity. Despite these benefits, seasonal fluctuations in income and unforeseen expenses occasionally hinder consistent saving practices, presenting a challenge to maximizing the potential impact of VSLA participation. Nonetheless, the general perception of VSLA savings among members is overwhelmingly positive, reflecting their recognition of these schemes as vital instruments for economic empowerment and household stability. The study underscores the importance of strengthening VSLA initiatives to further improve financial resilience and well-being in rural households.