. Savings Savings means keeping aside a part of your money or other resource for use in future or for further production. Savings are important for a family to take care of their future needs. Savings are also important for any economy to survive and grow as savings lead to capital formation and accumulation.
This happens when savings are put to productive use by starting a business or depositing money in banks and financial institutions which mobilise public savings and use them for productive use. Savings of a family depend on the ability to save and willingness to save. Ability to save depends on per capita income. Higher income families have a higher potential to save compared to low income families who have little to save after taking care of their basic needs.
Willingness to save depends upon the long term goals of the family and how willing they may be to sacrifice some luxuries in the present to take care of the future. Saving money is not easy. It takes discipline, planning, co–operation and hard work on the part of family members. But saving money is very important for family security and happiness.
Saving for saving’s sake is futile. Savings have meaning only when the purpose is well-planned and understood by all family members and the money wisely invested for future use.