<span>This study investigates the differences in precautionary savings between black and white Americans using the theories of reasoned action and individualism and collectivism. A sample size of 229 blacks and 397 whites for a total of 626 participated in the survey. This study finds that the reason for the difference in precautionary savings between blacks and whites is due to the influence of individualism and collectivism, which affects the saving decisions of the groups. Subjective norm and attitude affects saving behavior regardless of race. Behavioral intent mediates the effects of attitude and subjective norm toward saving behavior, indicating a favorable attitude and </span><span>subjective norm means a favorable behavioral intention to save and saving behavior. However, attitude and subjective norm of the groups are influenced differently by individualism and collectivism. Attitude moderates the effect of individualism on saving behavior while subjective norm moderates the effect of collectivism on saving behavior. Blacks are highly different in collectivism compared to whites. Therefore, the influence of subjective norm and attitude and the relationship in moderation affects saving decisions differently between the groups, hence a difference in the precautionary savings behavior and outcome between blacks and whites.Doctorate of Management Programs</span>
