Abstract

Establishing the causes of saving has occupied scholars since Aristotle (384–322 b.c.), who considered whether the accumulation of wealth was laudable or objectionable. In the two past centuries in particular, household saving has been subject to extensive theoretical and empirical research. This is due, in part, to its increasing importance for national economies. In spite of this we only have a partial understanding of households’ motivations for saving. We know some variables that might be used as predictors for household saving, such as income and age, but the underlying psychological processes governing the choice between saving and spending are still not well understood.