Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.


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 classic literature ?
Is there anything we can do," it asked, "to repay you for saving the life of our Queen?
Dorothy came to meet them and thanked the little mice warmly for saving her companion from death.
I am saving up three suits--one for a wedding-suit.
And,' reasoned Ralph with himself, 'if no good came of my uncle's money when he was alive, a great deal of good came of it after he was dead, inasmuch as my father has got it now, and is saving it up for me, which is a highly virtuous purpose; and, going back to the old gentleman, good DID come of it to him too, for he had the pleasure of thinking of it all his life long, and of being envied and courted by all his family besides.
When he returned from Hampton, we both combined our efforts and savings to send our adopted brother, James, through the Hampton Institute.
The little store of sovereigns in the tin box seemed to be the only sight that brought a faint beam of pleasure into the miller's eyes,--faint and transient, for it was soon dispelled by the thought that the time would be long--perhaps longer than his life,--before the narrow savings could remove the hateful incubus of debt.
SAVING FOR YOUR FUTURE Afraid Social Security won't be all you wish it would when you retire?
As part of The Principal Enrollment Suite(SM), the new patent pending Easy Enrollment form requires only three simple steps and is already increasing participation and savings rates by helping employees overcome the uncertainty and inertia that often prevents them from saving effectively for retirement.
I save for particular things," says Campbell, who is now saving tuition for his college-bound daughter.
Chase is helping parents instill the value of saving in their children by offering practical tips for building good savings habits on Chase.
7 nights in Costa Dorada from PS1565 for a family of three at the 4-star H10 Europa Park in Salou on half-board, Glasgow - August 11, 2013, a saving of PS248 per booking ?
write down their financial goals and commit to saving regularly; 2.