Creating Creatures of Habit

Practitioners, policy makers, and researchers often assert the importance of individuals developing savings behaviors. For the poor, especially, who may not have steady flows of income or access to credit, savings is critical to smoothing consumption, providing an economic cushion in case of emergencies, and building capital for productive investments. To begin savings habits at a young age, however, would provide an extended period of time for children and youth to build a stock of assets that could help finance their future economic needs as adults.