What Is the Basic Motivation for Saving?

The basic motivation for saving money varies among people and can be dependent on their goals.

saving money image by Wojciech Gajda from Fotolia.com

Saving money is rooted in the psychological need and desire to be financially stable. The security that accompanies saving is one of the basic motivational principles of saving money for the things one wants and needs. Various reasons for saving money motivate individuals to make certain that money is budgeted accordingly, and savings are kept earmarked for use later.

Home Ownership

A basic motivation for saving money stems from the desire to become a homeowner. The cost associated with purchasing a home is high, requiring you to save to help ensure home ownership can become a reality. The down payment required to purchase a home can run to more than 20 percent of the selling price. In addition, closing costs and settlement fees are also required to buy a house and can be saved for in advance.


The desire to retire with enough money saved up is a motivation for many people's savings. You need save money to ensure that once you stop working, you will have enough money in the bank or in investments to fund your lifestyle for the rest of your life. Reliance on traditional forms of retirement savings, such as Social Security or 401(k) investments alone is not always enough to pay for the routine expenses of life. Many people are motivated to save money for retirement so that they can afford the things they both want and need.

Travel and Luxury

For some people motivation for saving comes because they want nice things. Not everyone craves luxury items or travel. However, for those who enjoy such things, saving money may be a necessity. Planning for a big trip or a large purchase, such as a boat or car, can provide the motivation one needs to be disciplined in terms of saving money.

Children and College Savings

The future of your children or even grandchildren is yet another motivation for savings. Those with young children are motivated by the prospect of that child eventually going off to college. The rising cost of a college education drives people to save money so that a child can attend college without having to worry about finances. Some parents also are motivated to save for other things for their children such as a car, braces, a wedding or helping grown children buy a home.

Unexpected Situations

It's a simple fact that unexpected events and situations can arise at any time. Job loss, sickness, long-term illness and even economic issues can all cause a financial shift. Having a healthy savings account at the ready can help you get through challenging financial situations.