Chapter 1: What are Savings and Why are Savings Important?

Topics Covered

Definition of Savings:

• Savings refer to the portion of one's income or resources that is set aside for future use rather than being spent immediately.

Purpose of Savings:

• Savings serve as a financial cushion for unexpected expenses, emergencies, or opportunities that may arise in the future.

Long-Term Financial Goals:

• Savings are crucial for achieving long-term financial goals, such as buying a home, funding education, or retiring comfortably.

Financial Security:

• Savings provide a sense of financial security, reducing the dependence on loans or credit during tough times.

Wealth Building:

• Over time, accumulated savings can be invested to generate additional income and facilitate wealth accumulation, allowing for a better quality of life and financial freedom.