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.