Question

1. list and describe eight different reasons for savings.

Answer 1

8 different reasons for savings are as follows-

1. Savings are done in order to have financial independence so that will help in gaining and independence regarding taking various financial decisions.

2. Savings are done in order to to meet some long term objective of buying a house or buying a car.

3. Saving is done in order to counter with adverse economic scenario which will be helping in countering with various recessions and other down cycle

4. Savings are done for taking expensive tours and other foreign trips. It will help in taking expensive tours two other countries and other leisure trips.

5. Savings are done for expenses related to studies of children. Savings are often helpful in funding Higher school studies.

6. Savings are also done in order to fund after the retirement expenses.once the person is retired he will be having very low source of income so he will be trying to utilise his savings.

7. Savings are done in order to fund expenses related to marriages of children .savings will be helpful in funding marriages related expense of sons and daughters.

8. Saving are done in order to make large amount of wealth during a lot of time using the time value of compounding