Savings rate

(redirected from Saving Rates)

Savings rate

Personal savings as a percentage of disposable personal income.

Savings Rate

The amount a person or organization places in a savings account or similar vehicle as a percentage of total disposable income. Savings are important for long term financial stability as it gives a person or organization a cushion for bad times. The savings rate may be calculated at microeconomic level for personal finances or may be aggregated at the national level to gauge financial health. A low or negative savings rate usually indicates excessive borrowing, spending, or both. On the other hand, a high savings rate may result in slower economic growth as persons and companies are saving instead of purchasing goods and services. See also: Rainy day fund.
References in periodicals archive ?
The auto savings generation: Steering millennials to better retirement outcomes finds that participation rates, saving rates, and equity allocations for millennial participants (ages 18--34) have been on the upswing over the last decade in defined contribution (DC) plans.
This difference in saving rates may hinge on the fact that the median annual household income reported by millennial men is USD77,000 versus USD56,000 for women.
Quarterly saving rates are fairly volatile, and even though the first estimate for April came in at an equally paltry 2.
Rising saving rates in China and many other Asian economies began to receive increased attention from researchers around this period, and Federal Reserve Chairman Ben Bernanke's 2005 speech arguing that the "savings glut" in emerging markets was a proximate cause of the imbalances gave further impetus to that research.
Contrary to this, as the dependency ratio (the age-population ratio of those not in the workforce [dependents -- usually those under 15 and over 64 years of age] and those in the workforce) increases parallel to ageing, it could drive up saving rates.
This World Bank report, referencing in its title the "Golden Rule" of saving rates of American economist Edmund Phelps (and others), wherein the savings rate maximizes steady state level or growth of consumption, considers how European policy-makers can manage to stay mindful of the "Golden Rule" in the face of demographic change and in their organization of the six principal economic activities: trade, finance, enterprise, innovation, labor, and government.
Dubai has celebrated its commitment to the betterment of our planet Earth and shown the world our leadership in the preservation of our natural resources by achieving the highest saving rates in the emirate to date," said Mohammed Al Tayer, MD and CEO of DEWA.
Commenting on the Earth Hour achievements, Al Tayer said; "Dubai has celebrated its commitment to the betterment of our planet Earth and shown the world our leadership in the preservation of our natural resources by achieving the highest saving rates in the emirate to date.
The report affirmed that the Sultanate is currently reaping the fruits of its economic development strategy adopted in the past years ; thanks to the stable macroeconomics , healthy budget surpluses , low public debt and high saving rates.
By looking at saving motives for households in each country, we hope to explain the difference in saving rates across these two countries," Yao said.
And although saving rates have improved slightly, household net worth has been essentially fiat since hitting rock bottom in the beginning of 2009.
But she is mighty pleased about what he has done with saving rates in the country in RBI's latest credit policy review.