Definition – What are private savings?
Private savings is the amount that the economy saves. It is calculated as total income less taxes and consumption.
Formula – How to calculate private savings
Private Savings = National Income – Tax – Consumption
Sources and more resources
- Wikipedia – National Savings – Description of how to calculate the national savings as well as public and private savings in an economy.
- Econ101help.com – How to calculate National Savings, Public Savings and Private Savings – A description and example formulas for savings calculations.
- Khan Academy – National Savings and Investment – Part of a larger course on Macroeconomics, this video details national savings (including public savings).