Saving is "deferred spending"
A perference to consumer tomorrow rather than today
Saving is not investment
But saving flow into the financial system
.......and help to provid the funds for investment spending by firms
Introfuction
The household saving ratio is measured as the percentage of real disposable income that is saved rather than spent
Trend in the Saving Ratio
The saving ratio is the percentage of disposable income that is saved rather than spent
Saving provide a financial safety net for households
A fall in the saving ratio means that household are choosing spending today rather than tomorrow
This may be acccompanied by a build up of consumer debt which will have to be repaid at some point in the future
Garraph Images
9 years ago