ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving is an important habit to get into for a number of reasons-it helps you cover future expenses, manage financial stress, plan for vacations and more. Understanding the different ways that saving money can help you thrive might motivate you to save more.

Detailed explanation-2: -How much does the average household have in savings? While the median bank account balance is $5, 300, according to the latest SCF data, the average-or mean-balance is actually much higher, at $41, 600.

Detailed explanation-3: -First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.

Detailed explanation-4: -While those numbers look high, remember this: Many Americans simply don’t have any savings at all. According to Bankrate data from January 2022, 56% of Americans would be unable to cover an unexpected $1, 000 bill with savings.