Savings

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DEFINITION of 'Savings'

According to Keynesian economics, the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time.

BREAKING DOWN 'Savings'

For those who are financially prudent, the amount of money that is left over after personal expenses have been met can be positive. For those who tend to rely on credit and loans to make ends meet, they will have negative savings. Savings can be turned into further increased income through investing.

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RELATED FAQS
  1. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
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    Residual income, or recurring income, is income earned on a continuous basis for completed work. It differs from linear income, ... Read Full Answer >>
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    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>
  4. What is the importance of residual value in an automobile lease?

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    A number of factors determine when an expense ratio is relatively high or low, but a good, low expense ratio is generally ... Read Full Answer >>
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