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the proportion of a person's (personal saving), company's or institution's (retained profits) income that is not spent on current consumption. Savings are typically placed on deposit with a BANK, BUILDING SOCIETY, etc., or used to acquire financial and physical assets such as SHARES or plant. By forgoing immediate spending on consumption, savers seek to augment their future income through dividends, interest and rent receipts and through capital appreciation.

In macroeconomic analysis, saving is the proportion of current NATIONAL INCOME that is not spent on current consumption and as such is a WITHDRAWAL from the CIRCULAR FLOW OF NATIONAL INCOME.

In the simple circular flow model, all saving is undertaken by households; in the extended model, saving is also undertaken by businesses (retained profits) and the government (budget surplus).

In real terms, saving is important in that it ‘finances’ physical INVESTMENT. Saving (forgoing current consumption) releases resources that can be devoted to increasing the country's CAPITAL STOCK and hence its capacity to produce a greater quantity of goods over time. See also SAVINGS SCHEDULE, PARADOX OF THRIFT, INDIVIDUAL SAVINGS ACCOUNT (ISA), PREMIUM BOND.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Average weekly saving: pounds 5 Total saving: pounds 30
Many people use what they consider to be a less-than-average income as an excuse for not saving money.
Ironically enough, in Saving Private Ryan, a film relating what seems at first like a classic rescue story, the question of salvation is significantly more complicated, and the lines between savior and saved much more blurred.
From a national saving perspective, the most serious attack on retirement saving came with an Omnibus Budget Reconciliation Act of 1987 provision, which limited the funding companies could provide for their defined benefit plans.
Even if private investment were not as interest-elastic as it appears to be, crowding out of private spending by the budget deficit would occur dollar for dollar if the total supply of saving were fixed.
WITH A LAW DEGREE in hand and no children to care for, she spent her income on dining and shopping, leaving little else for savings. But the 28 year old quickly learned that flying solo also has its own set of long-term financial circumstances to consider.
I find my recognition of Jesus saving me from such ordinary things as the boredom and routine of church committee meetings.
"It was normal for us to make the trek to the bank and put money in our savings accounts," says Patricia.
Dawson's commitment to saving is right in line with DOFE principle No.
Interested participants are asked to register online at the Black America Saves page with their savings goal.
Not modifying your spending habits and committing to saving money
In Simple Wisdom for Rich Living (Longstreet Press, $9.95), Oseola McCarty tells how she amassed more than $250,000 over her lifetime by faithfully saving the money she earned washing and ironing clothes for $1.50 to $10 a bundle.