This paper presents a capitalist-spirit model of savings by including
wealth in the intertemporal utility function. While this model include
s the life-cycle model and bequest model as two special cases; it shed
s light on why wealth holding has tended to increase with age, why dec
umulation of wealth after retirement has not happened, and why househo
lds with and without children have not shown significant differences i
n their savings behavior. The capitalist-spirit approach is especially
useful for understanding savings by the rich and savings across count
ries and over time (JEL E21, B10).