The objective of this study is to specify a model that analyzes the behavior of household consumption in Saudi Arabian having been through the literature on household saving in Saudi Arabia. It is to our understanding that there been very few empirical studies, devoted to analyze empirically the behavior of household consumption. This means that this study will be an important contribution in this area. After reviewing a number of consumption theories and some important field studies on household consumption in Saudi Arabia and some developing and developed countries, an empirical model was determined to analyze the behavior of household consumption in Saudi Arabia. This model contained several explanatory variables that were expected to have a strong influence on the behavior of household consumption. These variables are real gross domestic income (real GDI), inflation, and finally the demographic variable (population growth). The estimated model of this study revealed that the estimated model’s explanatory variables are statistically significant.