EV Hodala

Savings

Savings refers to the portion of income that is not spent on consumption but set aside for future use. It typically involves the accumulation of funds, which can be deposited into savings accounts, investments, or kept as cash. The primary purpose of savings is to ensure financial security for unforeseen expenses, to achieve specific financial goals, such as buying a home or funding education, and to build wealth over time. Savings can earn interest or investment returns, thereby potentially increasing the amount over time. The practice of saving is considered an essential aspect of personal finance and is often encouraged to create a safety net for emergencies and long-term financial stability.