Which statement is TRUE about differences in savings rates across groups of people?
A) Older people and higher-income people tend to save less.
B) Older people and lower-income people tend to save less.
C) Younger people and higher-income people tend to save less.
D) Younger people and lower-income people tend to save less.

Question

Quizplus · Accepted Answer

Younger and lower-income individuals often have less disposable income and higher immediate financial needs, leading to lower savings rates compared to older or higher-income groups. Older individuals typically save more as they prepare for retirement, and higher-income individuals have more disposable income to allocate towards savings.

Which Statement Is TRUE About Differences in Savings Rates Across