The Imporatance of Saving

Saving money and is it worth it today?

Jesse A Grieb

Upper Iowa University

Abstract

Saving money or valuable items have been around for a long time, people would save gold, silver, jewels and now in today’s society paper money to buy things later in life. The things that most people today save up for is to buy a new house or new car, while others save money to start a new business, however with today’s saving rates from banks and the rate of inflation is it even worth saving money today? With the federal government lowering the federal rate what does that mean for people that would rather save more of their money then to spend it on luxury items?

The Importance of Saving

Saving is essential to everybody’s lives, without money people would not be able to buy items that are considered luxury. It doesn’t matter if you want to save money to buy a new car to buy a bigger house, or maybe even a bigger TV, if all that you do is spend the money that you make and use credit cards and loans what would happen if a situation came up where you took in less money this month then you did last month? That is essentially why saving money is a good thing, to have some extra cash somewhere else that you can use incase times get hard.

Saving Accounts

Everybody likes to have money in their saving accounts if they can afford to put money in there, However according to Bankrate.com, savings accounts today on a national average is at .13 percent annual percentage yield, so why would one save money in their saving accounts today when inflation is close three percent in 2011, according to the Central Intelligence Agency. If you put your money into a saving account right now and collect the national average of .13 percent and inflation is at three percent you are ultimately losing money. So why is it that saving accounts are so low right now? Well there are multiple reasons, and according to Richard Barrington from Money Rates, it is because the “economy is weak” and...