ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving is setting aside money you don’t spend now for emergencies or for a future purchase. It’s money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Financial institutions offer a number of different savings options.

Detailed explanation-2: -Saving-The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals, and funds for investing.

Detailed explanation-3: -Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately.

Detailed explanation-4: -Savings is setting money aside for use at a later time. Investing is using a resource (usually money) with the expectation that it will generate increased income or grow in value. Think about why savings could be important in your life. Putting aside money for future use can help you meet life goals.

Detailed explanation-5: -Saving provides a financial “backstop” for life’s uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher-yielding investments such as stocks, bonds, and mutual funds.