National Savings Rate

AAA

DEFINITION of 'National Savings Rate'

An estimate from the U.S. Commerce Department's Bureau of Economic Analysis (BEA) of the amount of income left over after subtracting consumption costs and expenditures. The National Savings Rate, though it is referred to as a "savings rate," does not actually measure the amount of money Americans are saving or investing for the long-term. National savings include savings left over from personal, business and government.

INVESTOPEDIA EXPLAINS 'National Savings Rate'

The National Savings Rate is confusing at first glance, due to the fact that it is often substantially less than what the typical American reports contributing to their employer-sponsored retirement plans and IRAs. This difference is because the national savings rate includes government savings, and they are usually reporting deficits which lowers the national savings rate.

RELATED TERMS
  1. Capital Saturation

    An economic state in which real income is high and is expected ...
  2. Savings Rate

    The amount of money, expressed as a percentage or ratio, that ...
  3. Paradox Of Thrift

    The notion that individual savings rather than spending can worsen ...
  4. Lorenz Curve

    A graphical representation of wealth distribution developed by ...
  5. Department of Commerce

    The cabinet department in the U.S. Government that deals with ...
  6. Personal Finance

    All financial decisions and activities of an individual, this ...
Related Articles
  1. Budgeting

    5 Signs That You're Living Beyond Your Means

    Learn what to watch for before you find yourself drowning in debt or filing for bankruptcy.
  2. Options & Futures

    Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  3. Retirement

    Saving For Retirement: The Quest For Success

    We'll show you how to set yourself up to retire in style.
  4. Savings

    Retirement Savings Tips For Young People

    Learn how to avoid the bad habits that keep the average young adult from saving.
  5. Budgeting

    Budgeting When You're Broke

    When you're short on cash, a strict budget is the best tool for finding financial stability.
  6. Retirement

    Top 3 Retirement Savings Tips For 55- To 64-Year-Olds

    Find ways to save money and increase your nest egg for the fast-approaching golden years.
  7. Options & Futures

    Retirement Savings Tips For 25- To 34-Year-Olds

    Keep saving when mortgages, marriages and debt demand your attention.
  8. Retirement

    Are You Saving Too Much?

    "Spend now! Don't worry about retirement," say some experts. Could they possibly be right?
  9. Options & Futures

    Top 7 Most Common Financial Mistakes

    Choose fortune over disaster by avoiding these money traps.
  10. Savings

    Best (And Worst) Places To Change Money In Vegas

    Skip the booths at the airport and find an ATM when you want to exchange currency. Or try to use your credit card. Another good source: casinos!

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center