Financial IQ

What is savings?

Savings is the amount of money you have in storage which can be used to purchase new things for yourself.

People save every day, from coupons to choosing cheaper clothes, to using less water and cutting down electricity usage, we save money, supplies, clothing and general items. This benefits you as you have more resources to use for other purposes such as getting toys in the future.

 

How do people save? For a small amount of money, like pennies to buy toys, you use a piggy bank, and after saving for quite a time, you break the plastic pig and get all the small pennies and dollars inside it. For big amounts of money, you can save it at the bank, and get a small number of interest ( the per cent of your money in the bank that you get each term), not only this is effective and gives you money, you don’t have to worry about safekeeping.

 

Why should you save? Saving is often used for future needs (emergency bills, buying a house, cars, food…)

The importance of savings includ: education and tuition fees, emergency funds, medical bills, and so on.

For kids, its possibly a toy you like. By cutting your pocket money spending rate a little, you can save a few extra bucks each time you get your pocket money, this may seem small, but it is actually efficient and most toys are usually cheap, except for some extremely expensive toys that no one would bother spend too much money on. If you don’t want to spend on toys, you could use them to buy snacks, stationery for your studies and so on.

 

Keep saving, it will build up from the time you save it. If you can save for 18 years, each month just a few dollars, you would be suprised by how many cash you actually have by the time it ends!

 

 

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