Determinants and Patterns of Family Saving

Abstract

This study was designed to determine the relative importance of income, wealth, and family characteristics in explaining the decision to save, the level of saving in house holds, and the patterns of saving in several types of families. Data from the 1972 ‐1973 Consumer Expenditure Survey were analyzed using multiple regression and difference of means tests. The results supported the general hypotheses that the decision to save and the level of saving are influenced by income, wealth, and family characteristics and that saving patterns vary among different types of families. The findings suggest that while income is the primary determinant of families' initial decision to save, their level of saving is best explained by their current wealth position.