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:
“All the average human being asks is something he can call a home; a family that is fed and warm; and now and then a little happiness; once in a long while an extravagance.”
—Mother Jones (1830–1930)
“There surely is in human nature an inherent propensity to extract all the good out of all the evil.”
—Benjamin Haydon (1786–1846)
“Surely you wouldn’t grudge the poor old man
Some humble way to save his self-respect.
He added, if you really care to know,
He meant to clear the upper pasture, too.”
—Robert Frost (1874–1963)