Savings is money put aside by an individual or household for use in the future.
- Saving is key to good money management,
- Savings help individuals and households manage risk, deal with emergencies, smooth income, build assets, and meet financial goals.
Reasons to save:
- You can use savings to meet both expected and unexpected needs. They help to smooth cash flow, allow for optional expenditures, and invest in assets and businesses.
- In case of emergencies and crises, savings enable you to respond immediately and, over time, recover from related loss of income or property.
- Savings play a key role in meeting financial goals. These can include short-term goals (weeks or months) such as buying stock for a business or paying school fees; medium-term goals (1–3 years) such as home improvement expenses or a visit to the family; or long-term goals (over 3 years), such as to buy a house or save for retirement.