Process of setting aside a portion of current income for future use, or the resources accumulated in this way over a given period of time. Savings may take the form of bank deposits and cash holdings or securities. How much individuals save is affected by their preferences for future over present consumption and their expectations of future income. If individuals consume more than the value of their income, then their saving is negative and they are said to be dissaving. Individual saving may be measured by estimating disposable income and subtracting current consumption expenditures. A measure of business saving is the increase in net worth shown on a balance sheet. Total national saving is measured as the excess of national income over consumption and taxes. Saving is important to economic progress because of its relation to investment: an increase in productive wealth requires that some individuals abstain from consuming their entire income and make their savings available for investment.
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System for uniformly advancing clocks, especially in summer, so as to extend daylight hours during conventional waking time. In the Northern Hemisphere, clocks are usually set ahead one hour in late March or in April and are set back one hour in late September or in October. In the U.S., Daylight Saving Time begins on the second Sunday in March and ends on the first Sunday in November. In most of the countries of western Europe, it starts on the last Sunday in March and ends on the last Sunday in October.
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In a broader sense, saving is typically used to refer to economizing, cutting costs, or to rescuing someone or something.
Saving differs from savings in that the first refers to the act of putting aside money for future use, whereas the second refers to the money itself once saved.
There is some disagreement about what counts as saving. For example, the part of a person's income that is spent on mortgage loan repayments is not spent on present consumption and is therefore saving by the above definition, even though people do not always think of repaying a loan as saving. However, in the U.S. measurement of the numbers behind its gross national product (i.e., the National Income and Product Accounts), personal interest payments are not treated as "saving" unless the institutions and people who receive them save them.
"Saving" differs from "savings." The former refers to an increase in one's assets, an increase in net worth, whereas the latter refers to one part of one's assets, usually deposits in savings accounts, or to all of one's assets. Saving refers to an activity occurring over time, a flow variable, whereas savings refers to something that exists at any one time, a stock variable.
Saving is closely related to investment. By not using income to buy consumer goods and services, it is possible for resources to instead be invested by being used to produce fixed capital, such as factories and machinery. Saving can therefore be vital to increase the amount of fixed capital available, which contributes to economic growth.
However, increased saving does not always correspond to increased investment, if savings are stashed in a mattress or otherwise not deposited into a financial intermediary like a bank there is no chance for those savings to be recycled as investment by business. This means that saving may increase without increasing investment, possibly causing a short-fall of demand (a pile-up of inventories, a cut-back of production, employment, and income, and thus a recession) rather than to economic growth. In the short term, if saving falls below investment, it can lead to a growth of aggregate demand and an economic boom. In the long term if saving falls below investment it eventually reduces investment and detracts from future growth. Future growth is made possible by foregoing present consumption to increase investment.
In a primitive agricultural economy savings might take the form of holding back the best of the corn harvest as seed corn for the next planting season. If the whole crop were consumed the economy would deteriorate to hunting and gathering the next season.
Savings within personal finance refers to the accumulated money put aside by saving.
Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. This distinction is important as the investment risk can cause a capital loss when an investment is realised, unlike cash saving(s). Lower levels of risk normally apply to savings e.g. real value is lost when inflation exceeds interest rates, or in extreme cases loss can occur due to bank failure.
In many instances the term saving and investment are used interchangeably which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. To help establish whether an asset is saving(s) or an investment you should ask yourself, "where is my money invested?" If the answer is cash then it is savings, if it is a type of asset which can fluctuate in nominal value then it is investment.