estalvi

Estalvi is the Catalan noun for savings and the verb estalviar means to save. In economics, estalvi refers to the portion of income that is not spent on current consumption and that can be allocated to investment or held as financial assets. The concept applies at multiple levels: personal estalvi (household savings), corporate savings, and national saving, which equals private saving plus public saving.

The saving rate is a common macroeconomic indicator and is calculated as saving as a share of disposable income. Disposable income minus consumption equals saving, and the saving rate expresses this as a proportion of income available to households and governments.

Savings are typically placed in financial instruments such as bank deposits (savings accounts and time deposits), government bonds, pension funds, and other investment vehicles. The choice of instrument depends on liquidity, risk tolerance, and time horizon.

Economically, higher estalvi can supply capital for investment and influence interest rates and growth. Conversely, low savings can constrain capital formation and may affect the balance of payments. Policy measures to support estalvi include financial education, tax-advantaged savings plans, automatic enrollment in savings programs, and products that balance liquidity with longer-term returns.

Cautions: inflation can erode real value if returns lag inflation; inadequate diversification can raise risk; high savings with insufficient consumption can depress short-term demand. In everyday use, estalvi emphasizes prudent financial preparation for emergencies, retirement, and future goals.