Household changes, I.E Lifecycle changes Essay Example | Topics and Well Written Essays - 250 words

Household changes, I.E Lifecycle changes - Essay ExampleThe Life-Cycle Model of Consumption and Saving tells us that younger people have a tilt borrow bullion so they can spend it on education and housing ( Browning and Crossley, 2001). Young people spend their money on get things while they be young professionals. As for young people, their tendency is to go overboard in their purchases which make them work harder to pay off credit bankers bill debts. Because of this young people incur debts through credit card. If this is a common behavior for most people, then old people have few money left for them at that time they badly need it for hospitalization and burial. By the time this young people reach middle age, debts have already piled up since they are burdened with their childs education and house mortgage. As they approach old age or retirement, the savings ( if there are any) are slowly used since they get sickly and have medical bills. Over-all, a persons savings in a lif etime is really down in the mouth unless you are used to saving money as a