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:
“But the whim we have of happiness is somewhat thus. By certain valuations, and averages, of our own striking, we come upon some sort of average terrestrial lot; this we fancy belongs to us by nature, and of indefeasible rights. It is simple payment of our wages, of our deserts; requires neither thanks nor complaint.... Foolish soul! What act of legislature was there that thou shouldst be happy? A little while ago thou hadst no right to be at all.”
—Thomas Carlyle (1795–1881)
“Women ... are degraded by the ... propensity to enjoy the present moment, and, at last, despise the freedom which they have not sufficient virtue to struggle to attain.”
—Mary Wollstonecraft (1759–1797)
“... in the fierce competition of modern society the only class left in the country possessing leisure is that of women supported in easy circumstances by husband or father, and it is to this class we must look for the maintenance of cultivated and refined tastes, for that value and pursuit of knowledge and of art for their own sakes which can alone save society from degenerating into a huge machine for making money, and gratifying the love of sensual luxury.”
—Mrs. H. O. Ward (1824–1899)