Question

Explain the importance of saving.

Answer 1

1. It reduces economic insecurity, especially in old age after retirement.
2. Helps in the period of physical inability or during illness.
3. Useful during an emergency like loss of job, accident, natural calamities, loss of head of the family member (or earning member).
4. Useful for long-term goals (children's education, marriage or other family expenditure).
5. Useful in making big purchases like Houses, Cars, etc.
6. It becomes a source of income.
7. It helps maintain a good standard of living.
8. It helps to live debt-free.