What does precautionary savings mean?
Definitions for precautionary savings
pre·cau·tionary sav·ings
This dictionary definitions page includes all the possible meanings, example usage and translations of the word precautionary savings.
Wikipedia
Precautionary savings
Precautionary saving is saving (non-expenditure of a portion of income) that occurs in response to uncertainty regarding future income. The precautionary motive to delay consumption and save in the current period rises due to the lack of completeness of insurance markets. Accordingly, individuals will not be able to insure against some bad state of the economy in the future. They anticipate that if this bad state is realized, they will earn lower income. To avoid adverse effects of future income fluctuations and retain a smooth path of consumption, they set aside a precautionary reserve, called precautionary savings, by consuming less in the current period, and resort to it in case the bad state is realized in the future.
Numerology
Chaldean Numerology
The numerical value of precautionary savings in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of precautionary savings in Pythagorean Numerology is: 5
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"precautionary savings." Definitions.net. STANDS4 LLC, 2024. Web. 6 May 2024. <https://www.definitions.net/definition/precautionary+savings>.
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