Definition of saving
- a savings of 50 percent
The new system will provide a saving in labor.
How much money do you have in savings?
She has her savings in stocks.
They were able to retire on their savings.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'saving.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
saving three members, the club is now fully committed to the fund-raising project
I would be ready, saving the fact that I can't find my missing shoe.
There are only two things to do with money: Save it or spend it. For example, let's say John Doe's paycheck is $1,600 every two weeks, or $3,200 a month. His expenses are the following:
Car payment: $450
Student loan payment: $450
Credit card payment: $300
Cell phone: $75
Total expenses: $3,000
Because John spends $3,000 of his $3,200 income per month, he saves $200.
In banking terms, savings accounts are time deposits, meaning that a bank can require the account holder to give notice before withdrawing the funds or impose a penalty for withdrawal before a specified date. The interest rates on savings accounts vary by institution but are generally lower than interest rates on longer-term deposits, such as CDs or even money market accounts. Interest is usually compounded monthly.
It is dangerous not to save money. Not only is it financially risky, it creates unnecessary stress. To enable savings, John must reduce his expenses so that they are less than his income, and he should make regular, disciplined deposits into a savings and/or investment vehicle.
Ironically, when a country saves so much money that it hardly spends anything, its economy can suffer. This is called the paradox of thrift, which is an economic theory developed by John Maynard Keynes that states that the more people save, the less they spend and thus the less they stimulate the economy.
It is important to note that the interest rate paid on a savings account may be below the inflation rate, meaning that the account actually might lose purchasing power over time despite the interest earned.
: an amount of something that is not spent or used
savings : the amount of money that you have saved especially in a bank over a period of time
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Confusing Words—A Quiz