The Importance of Saving Money. Saving money can help you become financially secure and provide a safety net in case of an emergency. Here are a few reasons why we save: Emergency cushion - This could be any number of things: a new roof for your house, out-of-pocket medical expenses, or sudden loss of income.
Likewise, people ask, what are the advantages of having a savings account?
The Advantages of Saving or Investing. Saving money is advantageous because it provides people the opportunity to earn interest while keeping their money safe. Investing money can be risky, but it offers higher returns than bank savings accounts and can help people build wealth over the long-term.
Is it worth having a savings account?
I would say that,with interest rates as low as they have been, traditional savings accounts are not worth it. They offer tiny fraction of a percent in return. A good alternative is a money market savings account , with online banks like Capital One 360 or Ally.
Why would you put money in a savings account?
Savings accounts allow you to keep your money in a safe place while it earns a small amount of interest each month. These accounts usually require either a low minimum balance, like $25, or may require no minimum balance at all. This depends on the bank and the type of account.