Substantial changes in equity values and the value of residential real estate over the past decade have generated new interest around the world in the potential influence of household-sector wealth on the final consumption expenditure of private households (Aoki et al., 2002; Boone et al., 2001 and Catte et al., 2004). This is equally true in South Africa. Final consumption expenditure by households relative to gross domestic product rose from an average of 56 per cent in the 1980s to an average of 621⁄2 per cent between 1990 and 2005. By contrast, gross saving as a percentage of gross domestic product declined from an average of 241⁄2 per cent during the 1980s to only 16 per cent on average between 1990 and 2005. Likewise, gross saving by the household sector relative to gross domestic product declined from 61⁄2 per cent to 31⁄2 per cent on average during these respective periods. Household balance sheet evidence is likely to help explain these phenomena; see Aron and Muellbauer (2000a) and Prinsloo (2000) for more detailed discussions.