An analysis of the 1983 and 1986 Survey of Consumer Finance shows that 40% of U.S. households had a decrease in real net non-housing assets between the two survey periods. This study uses t-test, bivariate and multivariate analyses to investigate household saving behavior and identify factors related to it. Multivariate regression results show that the household’s initial net non-housing asset level is the most important factor related to increases in net non-housing assets (saving.) The initial net non-housing asset level in 1983 was negatively related to saving between the two periods. Households with higher income levels had higher predicted saving than those with lower income levels. Households with a high level of risk tolerance saved more than their counterparts. Households that received windfalls between 1983 and 1986 saved a large fraction (87%) and only consumed a small fraction of the windfalls received. Key Words: saving, risk tolerance, net worth

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