Households reduce money balances with increasing wealth, defying expectations.
The study looked at how people's demand for money changes as their wealth increases. Data from 735 households in the U.S showed that when people become wealthier, they tend to keep less money in their bank accounts. This suggests that money is not seen as a valuable asset by households. The research also found that people do not always make the best decisions when managing their money, even when they have all the necessary information.