Overview of Savings Across Income Classes
Savings across income classes means the savings habits that are present in various classes of people separated on the basis of the amount of money they earn. There are actually three income classes - the rich, the poor and the middle class.Income Concentration and Inequality
The phenomenon of income concentration means concentration of income at the hands of a few individuals of a particular society. That in turn leads to a certain degree of inequality at the levels of income among the members of that society.Inequality in income means all the people are not earning the same and a few members are earning more than others. This is crucial in the context of savings as the amount of money saved by a person depends on the amount he earns.
Personal Disposable Income
Irregularity in patterns of income in a particular society leads to different levels of personal disposable income. The personal disposable income is also important in the context of savings as it is used by the individuals and families for the purposes of savings.Different levels of personal disposable income means that there are difference in the way the families or individuals of different income classes approach their savings. The patterns of expenditure also differ in this case.
In most cases the families that can be categorized as poor can save little as they earn the least and have to spend most of their household income for the purpose of obtaining the basic necessities of life like food, clothing and medicines for example. As a result they are able to save the least.