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)
“Women’s propensity to share confidences is universal. We confirm our reality by sharing.”
—Barbara Grizzuti Harrison (1941)
“It can be fairly argued that the highest priority for mankind is to save itself from extinction. However, it can also be argued that a society that neglects its children and robs them of their human potential can extinguish itself without an external enemy.”
—Selma Fraiberg (20th century)