What is saving?
Saving is the act of setting aside money now to prepare for the future.
What to save for
- Big ticket items, such as a car, house, or wedding
- Emergencies, such as medical expenses or unemployment
- Retirement
- Other unplanned expenses, such as car repairs
Where to put savings
Banks vs. Credit Unions
Banks and credit unions are the two common types of financial institutions that offer savings options.
Information About Banks vs. Credit Unions at WalletHub
Savings Accounts vs. Certificates of Deposit vs. Money Market Accounts
Generally, banks and credit unions provide four basic types of accounts to help you manage your settings.
Difference between saving and investing
Your interest rate will be much higher when you invest in mutual funds or stocks as compared to when you put money into savings. However, investing is much riskier because it doesn't always guarantee a return.