What factors affect individual motivations to save?. Management

Financial decisions are framed by the context:

  • individual capabilities
  • family and social situation
  • wider social ad economic conditions

Reasons for saving:

  • Precautionary (rainy day, unforeseen events)
  • Planned lifecycle (buying a house, getting married, retirement)
  • Intra household (children's tuition fees, parents carehome)

Examples of wider social and economic conditions:

  • Welfare contract with the state, eg children, illness, pensions, unemployment benefit
  • Financial deregulation: competitive market for financial products, aggressive sales and marketing, choice vs complexity, innovation vs misselling.
  • Cultural elements to the 2008 Crash.