The bequest motive is the desire to leave an inheritance for one’s heirs. This motive is important in economics because it can help explain why people save money. The bequest motive suggests that people are more likely to save if they believe that their savings will be passed on to their loved ones after they die.
The bequest motive is important to consider when thinking about personal finance and retirement planning. It can help individuals make decisions about how much to save now in order to provide for their families in the future. The bequest motive can also help explain why some people choose to donate money to charity or give gifts during their lifetime.
The bequest motive is a key part of economics and can help us understand why people make the financial decisions they do. It is important to consider when making personal finance decisions, as well as when thinking about retirement planning and estate planning.