Savings are the part of income not spent. They sit in bank accounts, retirement funds, or under a mattress. They represent deferred consumption: money set aside for later. Economists track the savings rate as a share of disposable income.

Savings serve several purposes. They cushion against emergencies. They fund large purchases like a home or education. They provide income in retirement. For an economy, savings supply the capital that banks lend to businesses for investment.

Savings rates vary widely. Some households save 20 percent of income. Others save nothing or go into debt. Culture, income level, and social safety nets all shape the pattern. Countries with strong public pensions may see lower private savings. Countries where people must fund their own retirement see higher rates.

Common forms

• Bank savings accounts
• Certificates of deposit
• Retirement accounts
• Government bonds
• Cash holdings