saving money in the bank?

Question

why should an individual save money...how does it effect our economy?

Answer 1

Yes, you should put your money in bank. The bank is secure and bank have insurances in case of lost or fraud.

Julie
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Answer 2

One of the primary reasons for saving money is for an emergency fund. Stuff happens, and if you are not prepared financially for it, you'll need to borrow money to take care of the problem. It';s also a good idea to save money (in a separate fund) for bills that you know are coming up, but that are periodic, such as auto registration and other annual or semi-annual fees and costs.

Financial experts keep a close eye on how much Americans have in debt. Most do not have substantial savings. I think that if mpore people saved money our economy would be more stable.

Financial experts say that you should have six months of gross income in liquid savings. I'm not sure exactly why, but I've heard this time and time again. I don't think very many people have that.

They also say that there are only TWO things you should ever borrow money for - education and housing. So saving would allow you to pay cash for a car.

I've paid enough interest to help build the skyscrapers in New York that say Citibank, MBNA, American Express, Countrywide, etc. Saving money allows you to handle expenses without borrowing money, which saves you more money - money the "sharks" don't get. The "sharks" want as much of your hard-earned money that they can entice you into paying them. It's a multi-billion-dollar business!

Answer 3

Maybe..if everyone saved alot of money and put it in the bank. The bank would lower it's rate to lend out..then people who were interested in buying a new house, would feel that it would be worth it to borrow. . Then as more people bought new houses that would create more jobs and the building trades would boom and that would be good for the economy..

How's that?