As with consumption, the main influence on saving is disposable income. As disposable income rises, the total amount saved and the proportion saved (the savings ratio) increases.

The greater the variety of saving opportunities on offer, the more likely people will find a scheme that will suit them. Confidence in the ability of institutions to pay an interest and repay the amount saved, is also important.

The wealthier people are, the easier they will find it to save.

The young and the old tend to save less than middle- aged people. The old, especially the very old, draw on their savings to ensure a reasonable living standard during retirement.

A rise in the rate of interest may reduce some target saving as people can now attain their target amounts by saving less. Overall it is likely to increase non-contractual saving as it pushes up the reward for saving.

The attitude to saving varies between countries. In some it is held in high esteem while in others people prefer to spend most of their income when they receive it.

Tax concessions on the income earned from saving will encourage people to save. In a number of countries there are some free schemes where no tax is charged on the interest earned.