Savings (Elementary)
Savings is the process of setting aside money for future use. It is an important part of personal finance and is often used to purchase large items such as a car, house, or college tuition. Savings can also be used to build an emergency fund, which is a reserve of money that can be used in the event of an unexpected expense or job loss.
History of Savings
The concept of saving money has been around for centuries. In ancient times, people saved money by burying it in the ground or hiding it in secret places. In the Middle Ages, people began to use banks to store their money. This allowed them to earn interest on their savings, which made it easier to accumulate wealth. In the modern era, people have access to a variety of savings accounts, including savings accounts, certificates of deposit, and money market accounts.
Comparison of Savings Accounts
| Account Type | Interest Rate | Minimum Balance |
|---|---|---|
| Savings Account | 0.05% | $0 |
| Certificate of Deposit | 0.25% | $500 |
| Money Market Account | 0.50% | $2,500 |
Summary
Savings is an important part of personal finance and is used to purchase large items, build an emergency fund, and accumulate wealth. People have access to a variety of savings accounts, including savings accounts, certificates of deposit, and money market accounts. For more information about savings, visit websites such as Bankrate.com, Investopedia.com, and NerdWallet.com.
See Also
- Investing
- Budgeting
- Retirement Planning
- Debt Management
- Credit Cards
- Insurance
- Tax Planning
- Estate Planning
- Risk Management
- Financial Planning
