Money laid aside by its owner out of use for a period of time as they do not wish to use it to fund their spending at that moment.
Savings take money out of circulation. As a result saving reduces the amount of economic activity in an economy. It does so by reducing the multiplier effect in that economy because saving effectively stops money circulating within it. As a result, savings have a negative macroeconomic impact on growth however sensible they might be for the person making them.
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