Which Households Think They Save?

Abstract

We examine household saving in the context of a prescriptive model. Using Survey of Consumer Finances data sets in the 1995–2004 period, 57% of households reported spending less than income. Many effects in the multivariate analysis are consistent with a prescriptive model. We discuss other effects in terms of possible differences in the ability to plan or the accuracy of reporting by the respondent. Young households are more likely to report saving than older households. Black households are less likely to report saving than white households. Single female households are less likely to report saving than single male households.