THE CONCEPT OF SAVINGS CONSUMPTION IN REALIZING THE FINANCIAL IDEA

Abstract

The aim of this research is to determine the concept of savings consumption in realizing ideal finals. This research method uses qualitative research, literature study. Research results: Consumption has a close relationship with savings levels. Where savings are part of income that is not consumed or spent. Interest rates influence people's consumption expenditure through savings. The higher the interest rate, the greater the amount of money saved so that the smaller the amount of money spent for consumption. Conversely, the lower the interest rate, the lower the amount of money saved and the greater the amount of money used for consumption. So the relationship between consumption and interest rates has an inverse relationship, where an increase in interest rates will reduce people's consumption patterns. The high interest of people in saving is influenced by the high and low interest rates. Higher interest rates result in the amount of savings increasing, due to the accumulation of assets. If the interest rate is high, people will reduce current consumption to increase savings.