How is a household's precautionary savings likely to be affected by the following events?
(Hint: precautionary savings reflects how much a household SHOULD save because of uncertainty, not how much they can save.)
1) The main wage earner in the house switches from a career in management at a large corporation to starting a small consulting business.
2) The household is given $5 million from a wealthy relative's estate.
c) A couple's last child graduates from college