According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime? 

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The life- cycle hypothesis helps to explain the habits of individual spending and saving.  The hypothesis explores a typical pattern for individual saving over their lifetime in relation to debt and expenses.  The life- cycle hypothesis asserts that spending increases in the early years of one's working life and at the end of one's life in retirement. At these two points, consumption habits are their highest.  The hypothesis asserts that in the early years of one's working life a great deal of expenses and debt is incurred.  The generating of income is not as strong in the early years of working, and thus greater need to consume is evident.  At the same time, while it might be a stated priority, the hypothesis makes the case that savings is not something that can be generated with ease because of the inconsistent and unequal income status and needs.  For this reason, spending and consuming habits in the early years of working take priority over savings.

Towards the apex of one's...

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