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Precautionary Motive

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Precautionary motive
A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay.
Precautionary Motive
The desire to keep extra money in case an unforeseen situation requires a capital outlay. For example, one may wish to save extra money to pay for medical bills in case of an accident. According to John Maynard Keynes, people keep savings accounts, as well as some stocks and commodities, with a precautionary motive in order to cover unexpected events. See also: Precautionary demand (for money).
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Fourthly, during slowdown a dominance of precautionary motive may induce consumer to either defer their spending decisions or shift to unbranded alternatives.
Summary of Economic Survey 2008-09 by Asian News International
These policies included, strengthening domestic consumption requires policies which transfer more corporate savings to households, as well as policies which reduce the precautionary motive for savings among households.
Asia needs rebalance growth to endure global downturn, says ADB by Balochistan Times (Baluchistan Province, Pakistan)
This model was further revised to include intergenerational transfer motive (saving for children) (Barro, 1978; Kurz, 1984) and precautionary motive (Saving for emergencies) (carroll, 1997).
Segmentation of investors based on saving motives by Kasilingam, R.; Jayabal, G. / Indian Journal of Economics and Business
 
 
 
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