As part of my return to blogging after a brief absence, I’m going to be writing a series of posts that answer some basic money questions. Even for seasoned consumers, it’s important to return to the basics from time to time, if nothing more than to solidify in our minds why we do these things. So today I’m going to be answering the question what is a savings account?
And I’ll be answering some FAQs at the end – one in particular about savings accounts for children.
Savings 101
Other than spend, there is no more basic activity to do with money than to save it. People save for many reasons. But the main purpose of saving is to have a store of money for needs, for wants or for emergencies.
You can save money anywhere. If you are like most people, you probably have a small amount of cash at your home. But the majority of people who want to save large amounts of cash do so by opening a savings account at local bank.
Yet there happens to be another major home security issue that is usually overlooked. This one is so big it’s hurting individuals and destroying families. Though we know it’s out there we refuse to take the necessary steps to stop its incursion into our home.
His first deposit was for $103, a very cool amount of money for a six year old to already have. The best part about this money though is that it was earned. All of it came from commissions he has earned from doing work around the house.
