The average propensity to save (APS), also known as the savings ratio, is an economics term that refers to the proportion of income which is saved, usually expressed for household savings as a percentage of total household disposable income. The ratio differs considerably over time and between countries. The savings ratio can be affected by (for example): the proportion of older people, as they have less motivation and capability to save; the rate of inflation, as expectations of rising prices can encourage people to spend now rather than later (monetary base/mass depreciation).
The complement is the average propensity to consume (APC).
Famous quotes containing the words average, propensity and/or save:
“The allurement that women hold out to men is precisely the allurement that Cape Hatteras holds out to sailors: they are enormously dangerous and hence enormously fascinating. To the average man, doomed to some banal drudgery all his life long, they offer the only grand hazard that he ever encounters. Take them away, and his existence would be as flat and secure as that of a moo-cow.”
—H.L. (Henry Lewis)
“The propensity to truck, barter and exchange one thing for another ... is common to all men, and to be found in no other race of animals.”
—Adam Smith (1723–1790)
“... the trouble is that most people in this country think that we can stay out of wars in other parts of the world. Even if we stay out of it and save our own skins, we cannot escape the conditions which will undoubtedly exist in other parts of the world and which will react against us.... We are all of us selfish ... and if we can save our own skins, the rest of the world can go. The best we can do is to realize nobody can save his own skin alone. We must all hang together.”
—Eleanor Roosevelt (1884–1962)