What do people do with the money they earn? They use it to meet their needs. People buy food, shelter, and clothing.
Sometimes some money is left over after we meet our needs. What do people do with that money? One choice is to save the leftover money. Saving means to keep money for later, instead of spending it now.
People save for big expenses, like buying a new car. People save in case of an emergency. If your refrigerator breaks, you need to be able to repair or replace it quickly. People save for a special item, such as a book or game.
People save money for big purchases or big emergencies. Many people put their money in bank accounts at banks. Banks keep our money safe. They also pay interest on savings. It can be hard to decide to save money for tomorrow. It seems easier to spend money on things we want today. It’s important to remember that saving money makes us more secure. We know that we are prepared for accidents. We know that we have planned for important big expenses.