What are Savings?
- Savings are the difference between a person’s disposable income and their expenditures.
How Do I Remember It?
- Think of savings as the “leftover” money you have after you’ve paid for everything you need and want. It’s like the portion of your income that you set aside for future use or emergencies.
Real World Example
- For example, if you earn $3,000 per month and spend $2,500 on rent, food, and other expenses, your savings would be the $500 that remains. You might choose to put this $500 into a savings account or invest it for future use.
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By: Ryan Aquino
