Savings is the portion of income not spent on immediate consumption, representing money set aside for future use. It's a crucial component of financial security, allowing individuals to achieve goals like homeownership, retirement, or education, and providing a buffer against unexpected expenses. Savings can be held in various forms, including bank accounts, certificates of deposit (CDs), or invested in assets like stocks and bonds, each offering different levels of risk and potential returns. Regularly contributing to savings, even in small amounts, can compound over time and significantly improve long-term financial well-being.
