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:
“In the middle classes the gifted son of a family is always the poorest—usually a writer or artist with no sense for speculation—and in a family of peasants, where the average comfort is just over penury, the gifted son sinks also, and is soon a tramp on the roadside.”
—J.M. (John Millington)
“Women’s propensity to share confidences is universal. We confirm our reality by sharing.”
—Barbara Grizzuti Harrison (1941)
“Those who first introduced compulsory education into American life knew exactly why children should go to school and learn to read: to save their souls.... Consistent with this goal, the first book written and printed for children in America was titled Spiritual Milk for Boston Babes in either England, drawn from the Breasts of both Testaments for their Souls’ Nourishment.”
—Dorothy H. Cohen (20th century)