Savings: how much is too much

One of the most difficult decisions that we have to make as a family is the question of how much to save — are we saving too much at the cost of enjoying the fruits of our labour now, or, are we saving too little for harder times, if and when, ahead? Partha Dasgupta, in the latest PNAS writes about Saving for an uncertain future:

For example, squirrels collect food for winter. Because that requires energy they face tradeoffs between current and future consumption. The question arises: what collection size would maximize inclusive fitness? Similarly, people save a portion of their wealth, not only for their own future consumption but also for their offspring and, by recursion, the offspring of their offspring, the offspring of their offspring’s offspring, and so on, down the generations.

A nice one; take a look!


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