Saving behavior of Russian households

Household savings perform two important functions: the investment potential for the household itself and the investment potential for the economy. It is generally assumed that all households behave rationally and necessarily save part of their income for unforeseen circumstances, investments, inheritance transfer or deferred consumption of expensive goods and services. However, not all households save, some spend everything they earn on current consumption. The article examines the factors that influence households’ decision-making about how much to spend and how much to postpone. Keynes’ theory of absolute income has been tested for compliance with modern savings standards of various income groups. In 2022, the Bank of Russia conducted an All-Russian Household Survey on Consumer Finance, during which 6,081 households were interviewed. Based on the questionnaires of this survey, the interrelations between the propensity to save households and various factors were revealed. The relationship between different income groups of households and their savings rate, the nature of the household’s money disposal and the financial planning horizon, as well as the financial planning horizon and financial goals were investigated.