Personal saving fell to just 0.5% of disposable income in April and May, the Fed says.
If share prices plunge, a low personal saving rate provides less of a cushion than a high one.
Business and personal saving are not sufficient to offset the negative public saving, as measured by the budget deficit.
National saving is composed of personal saving, business saving, and government saving, i.e. an excess of tax revenue over expenditures.
The personal saving rate in July dipped to a negative 0.9%, the 16th month in a row the rate has been negative.
Personal saving is low and falling, as consumers spend their stockmarket gains.
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Personal saving, as we know, is low but positive these days.
Indeed, one of the strongest arguments for a shift to individual provision is that it should raise the personal saving rate, which would help to foster economic growth.
Our national saving, consisting of personal saving, business saving, and government saving, has been inadequate, in part because the government saving component, measured by the budget balance, has been negative rather than positive.
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Ed McKelvey, an economist at Goldman Sachs, points out that the historically flat personal saving rate (once realised capital gains are included) means that households are, in essence, treating such gains as a perfect substitute for disposable income.
Just as the 1950s boom in car sales was fuelled when car companies lengthened the credit period on buying new cars from 24 to 36 months, so the decline in personal saving in recent years has much to do with the ease of borrowing.
First, higher personal-saving rates and (more optimistically) a lower federal deficit will hold down long-term interest rates and the cost of capital.
The government wants to introduce, also in 2012, a new system of personal retirement-saving accounts.
Since the old, who have shorter time horizons, have larger propensities to consume than do the young, this transfer has fueled a huge increase in personal consumption, reducing our national saving rate (saving as a share of national income) from 10 to 15% in the 1950s and 60s to a negative 1.5% last year.
Kiara Daines, a 17-year-old from Detroit, Michigan, said she's saving herself until marriage for personal and religious reasons.
But the coalition-saving deal coincided with a personal scandal surrounding one of Mr Dewar's political advisers, which promptly displaced it from the local headlines.
Utilize money saving tips that you use in your personal life in your business life.
Younger workers should have the opportunity to build a nest egg by saving part of their Social Security taxes in a personal retirement account.
According to such an interpretation, the drop in household saving, to only 1.5% of personal income in December, is no cause for alarm: households no longer need to save, because rising wealth in shares and homes will do it for them.
Maybe you can help them out in a personal way like grabbing lunch for them when you get your own, saving them the trip.
We believe that the key to strengthening future pension benefits and reducing future Social Security taxes is to increase national saving over the next several decades by diverting budget surpluses to Personal Retirement Accounts, rather than spending those government surpluses as they have been in the past.
It's also more closely tied to the cloud, saving documents to Microsoft's SkyDrive storage system by default, so your documents and personal settings are remotely accessible.
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Whether you are saving for your next car repair, a month's rent, or for a personal goal, you are taking the first step to expand your choices by setting savings aside.
Because the long term returns from real savings and investment are so much higher, saving and investing over a lifetime the 2.9% Medicare payroll tax in the personal accounts would produce an income stream in retirement roughly three times as large as the uninvested, tax and spend, purely redistributive, pay-as-you-go Medicare payroll tax today.
May personal income jumped 1.9%, while spending rose 0.8%, indicating consumers were saving more than twice as much of their pay as they were spending.
Faith in the long-term saving industry has been eroded by a succession of scandals, notably over the mis-selling of personal pensions.
Private pension saving has been getting a bad name, as the troubles at Equitable Life follow the scandal of personal pension mis-selling.
So the leap in consumer spending as a share of personal income (see chart 7 ), which has been propelled by tax cuts that were only partially offset by saving increases, is highly unlikely to persist.
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