Personal finance ratios

There are seemingly countless ways to measure financial health for both individuals and
corporations. In earnings reports, companies use complicated calculations and ratios to
inform investors—and the general public—regarding the health of their business. However,
the average American can use these principles to assess their own financial health

Personal savings

Formally known as “average propensity to save,” the personal savings ratio is the amount of income saved for an individual or household. According to the Federal Reserve Bank of St. Louis, the average saving rate was just under 5 percent for Americans in 2016. Historically, the average savings rate in any given year since 1959 has been about 8.5 percent.

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