ఖర్చు తగ్గించడం (Saving) మరియు పొదుపు చేయడం (savings) పదాలకు అర్థశాస్త్రంలో వేర్వేరు అర్థాలున్నాయి. మొదటిది దాని వలన వ్యక్తి నికర ఆస్తులు పెరిగితే రెండో దాని వలన ఆస్తులలో ఒక భాగం సాధారణంగా పొదుపు భాగం పెరుగుతుంది. పొదుపును దీర్ఘకాలంలో నది (ప్రవాహం) మాదిరిగా మరియు స్వల్ప కాలమైతే చెరువు (ప్రవాహం లేనిది)గా పేర్కొనవచ్చు.
Saving is closely related to [[investment]]. By not using income to buy consumer goods and services, it is possible for resources to instead be invested by being used to produce [[fixed capital]], such as factories and machinery. Saving can therefore be vital to increase the amount of fixed capital available, which contributes to [[economic growth]].
However, increased saving does not always correspond to increased [[investment]], if savings are stashed in a mattress or otherwise not deposited into a financial intermediary like a bank there is no chance for those savings to be recycled as investment by business. This means that saving may increase without increasing investment, possibly causing a short-fall of demand (a pile-up of inventories, a cut-back of production, employment, and income, and thus a [[recession]]) rather than to economic growth. In the short term, if saving falls below investment, it can lead to a growth of [[aggregate demand]] and an economic boom. In the long term if saving falls below investment it eventually reduces investment and detracts from future growth. Future growth is made possible by foregoing present consumption to increase investment.
In a primitive agricultural economy savings might take the form of holding back the best of the corn harvest as seed corn for the next planting season. If the whole crop were consumed the economy would deteriorate to hunting and gathering the next season.