Savings

Savings means money that is kept instead of spent. In simple terms, savings are money set aside for future use. Savings are important because they help people prepare for emergencies, future purchases, and long-term financial goals. Having savings can reduce stress and make it easier to handle unexpected expenses without borrowing money. For example, if a person earns $3,000 a month and keeps $300 in a bank account instead of spending it, that $300 becomes savings. Savings are not the same as income. Income is money coming in, while savings are the part of that money that is kept for later.