saving

noun sav·ing \ ˈsā-viŋ \

Updated on: 4 Dec 2017

Definition of saving

1 : preservation from danger or destruction : deliverance

2 : the act or an instance of economizing

3 a savings plural : money put by

b : the excess of income over consumption expenditures —often used in plural

c : a usually specified lower cost —often used in plural

a savings of 50 percent

See saving defined for English-language learners

See saving defined for kids

Examples of saving in a Sentence

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.

Recent Examples of saving from the Web

But once outside the bar, the reporters began to compare their savings.

— charles p. pierce, Esquire, "FWD: FWD: FWD: The Tax System Explained in Beer," 30 Oct. 2017
My friend was so depressed last night thinking about the economy, wars, jobs, his savings, Social Security, retirement funds, etc.

— prescotte stokes iii, star-telegram, "Sid Miller shares suicide joke on social media, deletes post | Fort Worth Star-Telegram," 30 Oct. 2017
One worry concerns those who would benefit from higher interest on their savings.

— The Economist, "What goes down…Higher interest rates could hit Britain’s vulnerable economy," 28 Oct. 2017
But the bulk of his tax savings would come from the elimination of the estate tax, which as currently constructed would put a 40-percent levy on his estimated $3 billion in assets upon his death.

— annie lowrey, The Atlantic, "Trump Says His Tax Plan Won't Benefit the Rich—He's Exactly Wrong," 29 Sep. 2017
Six in 10 nursing home patients in the state rely on Medicaid, typically after their life savings have been drained by long-term care costs.

— roy s. johnson, AL.com, "From Mon Louis to AARP CEO: Jo Ann Jenkins' inspiring journey to powe," 17 Sep. 2017
There were also sizable collections of stocks and bonds, plus additional savings from my parents, along with the cash to get through college without any loans.

— mary mcclelland, Town & Country, "I Came Into Money—and I Squandered It All," 4 Mar. 2016
The council enacted a hiring freeze for 2017 that requires the board to approve filling a vacancy and see savings from the gap between an employee leaving and a new one being hired.

— craig lyons, Post-Tribune, "East Chicago councilman joins Sheriff's Department," 1 Nov. 2017
Their life’s savings have suddenly elasticated, thanks to miniaturized living costs.

— guy lodge, HWD, "Venice Review: Alexander Payne’s Satire Downsizing Presents an Oddly Appealing Escape from Trump’s America," 30 Aug. 2017

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.

Origin and Etymology of saving

Middle English, from gerund of saven to save

NEW! Time Traveler

First Known Use: 14th century

See Words from the same year

saving

preposition

Definition of saving

1 : except, save

2 : without disrespect to

Examples of saving in a Sentence

saving three members, the club is now fully committed to the fund-raising project

Origin and Etymology of saving

Middle English, from present participle of saven

NEW! Time Traveler

First Known Use: 14th century

See Words from the same year

saving Synonyms

Synonyms

apart from, aside from, bar, barring, beside, besides, but, except for, excluding, exclusive of, other than, outside, outside of, save, except

saving

conjunction

Definition of saving

: except, save

Examples of saving in a Sentence

I would be ready, saving the fact that I can't find my missing shoe.

First Known Use of saving

1535

saving Synonyms

Synonyms

but, only, except, yet

Financial Definition of SAVING

saving

noun

What It Is

In economics, savings is the amount that is left after spending. In banking, savings refers to savings accounts, which are short-term, interest-bearing deposits with a bank or other financial institution.

How It Works

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:

Rent: $1,300
Car payment: $450
Student loan payment: $450
Credit card payment: $300
Groceries: $250
Utilities: $75
Cell phone: $75
Gas: $100
Total expenses: $3,000

Because John spends $3,000 of his $3,200 income per month, he saves $200.

If John's expenses are higher than his income, he is not saving; he is living paycheck-to-paycheck. If he gets fired, has an emergency or his company closes in two weeks, he would have little backup.

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.

Why It Matters

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.

Source: Investing Answers