0455
Households
Microeconomic Decision Makers · 1 question type
Exam Frequency Analysis
Past paper frequency (2018 to 2024)
This topic accounts for approximately 4% of your exam marks.
new
Rare
New4%
New emphasis in the 2027 syllabus; influences on households' spending, saving and borrowing, including age and culture, are examined directly. Guidance based on specimen materials.
A household's stage of life shapes its pattern of spending, saving and borrowing.
- Young adults often have lower incomes but rising needs (housing, starting a family), so they tend to borrow (student loans, mortgages) and save little.
- Middle-aged people usually earn their peak incomes, so they can save the most, building up funds for retirement.
- Older / retired people often draw down their savings rather than add to them, spending what they put aside during their working lives.
So a country with an ageing population may see overall saving fall, because more people are using their savings rather than adding to them.