the sweater costs $15.99 regularly, however today is on sale, 1/4 off the regular price, how much is 1/4 of 15.99? well just their product, 15.99 * (1/4) = 3.9975.
that means that just for today, the sweater costs 15.99 - 3.9975.
so, today you're not really paying $15.99 for the sweater, you're paying 3.9975 less, so you're saving 3.9975. That's $3.9975 that you won't be spending on it, thus saving it.