• To get the money together for a deposit on a house or a car.
• To have money to cover any unplanned expenditure, such as a medical bill or home repairs.
• To ease money worries.
• To be able to borrow money less often or not at all.
• To have money for retirement. • To earn interest.
Money-saving Tips
We already know that we can make savings by preparing a budget. Other money-saving tips include:
• Cutting back on discretionary spending, such as holidays and entertainment.
• Cancelling any subscriptions that are no longer used or wanted, such as a gym membership or magazine subscription.
• Using the cheapest method of payment when buying goods. For example, use a debit card instead of a credit card when possible.
• Saving on utility and phone bills by comparing service providers.
• Downsizing where possible. For example, some cars have cheaper running costs and tax and insurance than others.
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Go to page 57 of your Activities and Accounts Book to make a personal savings plan. Personal savings plan
Deposit Accounts
While putting our cash in a piggy bank or jar at home can help us to save for something we need or want, it does not earn us interest. For that, we need to save with a financial institution, such as a bank.
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Interest is a reward given by a financial institution for saving money with them.
When we put our money into an account, it will be safe as well as earning us interest. 83
