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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.

References in periodicals archive ?
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.
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.
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.
Dawson's commitment to saving is right in line with DOFE principle No.
I find my recognition of Jesus saving me from such ordinary things as the boredom and routine of church committee meetings.
Interested participants are asked to register online at the Black America Saves page with their savings goal.
So if you've been saving up for a rainy day make the most of the deals with our great tips.