Written By: Heather L. Spencer and Jessie X. Fan

There is not much previous research investigating simultaneous debt and savings behavior. This study examines three distinct groups: savers, debtors, and simultaneous debtors and savers (SDS). Hypotheses were developed using a framework based on Browning and Lusardi’s review on saving motives. Precautionary, investment, enterprise, and down payment saving motives were hypothesized to increase the probability of inclusion in the SDS group, and the improvement, independence, and bequest saving motives were hypothesized to decrease the probability of inclusion in the SDS group. The precautionary, life cycle, investment, independence, bequest, and down payment saving motives hypotheses were either supported or partially supported. Key words: Simultaneous debt and saving, Debt, Saving, Savings motives, Survey of Consumer Finances

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