Savings can mean either

  1. A reduction in cost, that is, something was $50 off.
  2. Something that is put away, e.g., $50 was saved in bank account.

There is a substantial difference between these two meanings:

Suppose you have $50. You could

  • Spend it on a $100 item that was $50 off for a savings of $50.
  • Put the $50 in a bank account

In both cases, you have saved $50, but in the latter case, you actually have $50, whereas in the former you have $0.

Originally posted 2009-06-28 04:58:24.