PLEASE HURRY
Savings by Nation

CHAPTER 3, LESSON 1


Take a Look at the World’s Piggy Bank

The amount a household saves/the household disposable income = The household saving ratio



The formula above expresses the household saving ratio as a decimal, but you’ll also see it referred to as a percentage (like in the data below). To find the percentage based on the formula, simply move the decimal point in your answer two spaces to the right.


* Note: Disposable income is the amount of money that households have available for saving and spending after income taxes have been taken out.


Household Saving Rates

Canada 2.5%

France 8.4%

Germany 11%

Italy 2.7%

Japan 4.3%

Portugal (-2%)

Spain 2%

Sweden (16%)

UK (.4%)

US (8%)


PLEASE ANSWER THE QUESTIONS BELOW.


Compare the highest-saving nation to the United States. How much more does it save?



Tell me the average of every country's saving rates (add up/divided by the total).



Based on an annual disposable income of $40,000, calculate the average amount of money a person would save in Japan, in the United States, and in France.


What are some possible explanations for the low saving rate in the United States?


Using reputable and recently published internet sources, research the

current U.S. saving rate. Is it higher or lower than 8%? What might have caused this

increase or decrease in saving behavior?


Do you think the savings rate in the United States varies from generation to generation?


What might be some consequences of families not having adequate savings?