SAVING OF MONEY

Money is generally accepted as a means of

payment for goods and services. Money is
also what anybody earns by working.

Saving is the keeping of our money and

other valuables for future use.
Kinds of Money
COINS
NOTES
Ways of Saving Money
In the olden days, there was nothing like money, people
used to exchange goods for goods that is trade by barter.
But in recent time, there are different ways that money can
be saved.
Money can be saved nowadays in:
1) Bank: this is a financial institution where money is kept
for future use.
2) Direct Investment: this is when you tie money down by
buying something that you can sell in the future.
Example: land, shares, etc.
3) Money can also be saved in cooperative societies.
4) Children can save money in the piggy bank.
Importance of Saving Money
Some of the importance of saving money are:
1. Money is saved to avoid buying things that are
not necessary.
2. We save money so we can use it to buy things
that we might need in future.
3. We save money so that we can use it when we
don’t have enough money at hand.
4. When we save money, we have money available
to be able to assist others in need.
Advantages of Saving Money in the
Bank
1. Our money will be protected from theft and fire when it is
saved in the bank.
2. If you save your money in a bank, you will have immediate
access if there is an emergency.
3. Saving money in the bank is cheaper because banks
generally offer their account holders free or low-cost
services.
4. When you invest in a bank account, you can determine fairly
accurately the amount of money you will have at a specific
date in the future.
Disadvantages of Saving Money in the
Bank
1. The interest you earn in a bank account is
typically lower than the returns of other
investments.
2. Banks sometimes charge fees that can
exceed the interest rate on your account.
3. Banks limit the number of withdrawals
you can make from your savings account
each month.