savings ratio

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Related to savings ratios: Average propensity to save

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.

savings ratio

the proportion of NATIONAL INCOME that is saved by households (see PERSONAL SAVINGS RATIO), by businesses in the form of RETAINED PROFITS, and by the government in the form of BUDGET SURPLUSES.
References in periodicals archive ?
The latest data shows the average savings ratio for women fell from 8.
Sensitivity analyses examined the effect of various assumptions on the cost savings ratios.
In all leading OECD economies savings ratios were falling and debt-income ratios rising as people were encouraged to borrow more in order to spend more.
They base their findings on median savings ratios by age from the 1983 and 1986 Surveys of Consumer Finances.
The country's benign credit environment with loan loss provisions at a historically low level, healthy capital and savings ratios and low household debt has facilitated robust loan growth in the past few years.
The report concludes that underinvestment in infrastructure, low savings ratios, a growing income distribution gap and education are some of the key challenges affecting the growth outlook for the region.
Halifax pointed out that these findings are set against a backdrop of one of the lowest savings ratios for 40 years.
Mr Santer said Asian economies were very dynamic, had a solid resource base, high savings ratios, skilled labour and benefited from entrepreneurial dynamism.
This campaign is needed to help Americans understand what their debt-to-income and savings ratios should be, as well as the value of long term financial planning to avoid high bankruptcy rates in the coming years.