ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Savings refers to the money that a person has left over after they subtract out their consumer spending from their disposable income over a given time period. Savings, therefore, represents a net surplus of funds for an individual or household after all expenses and obligations have been paid.

Detailed explanation-2: -While there are several different types of savings accounts, the three most common are the deposit account, the money market account, and the certificate of deposit. Each one starts with the same basic premise: give your money to the bank and in return the money will earn interest.

Detailed explanation-3: -Budget. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.

Detailed explanation-4: -A spend-and-save account refers to an account that allows you to automatically stash away small amounts of cash as you consume goods and services. Each time you make a purchase using the debit card attached to your spend and save account, the amount spent is rounded up to the nearest dollar.