3.1 Savings basics

In this section:

• 3.1.1 Reasons to save
• 3.1.2 What are you saving for?
• 3.1.3 Case study: Saving for their future
• 3.1.4 Why people don't save
• 3.1.5 Emotions, habits, behaviours and your money
• 3.1.6 How to save
• 3.1.7 Video: Why you should save and how
• 3.1.8 A savings calculator
• 3.1.9 The rules of saving
• 3.1.10 Summary of key messages

Introduction

Most of what we do takes money. You may be able to cover day-to-day expenses each month, but can you set aside some savings to pay for anything extra, like unexpected home repairs, a vacation trip, or becoming unable to work for a month? Saving is an essential part of managing your finances. If you're just covering day-to-day expenses, you'll have a hard time paying for anything that takes more money.

In this section, you will learn:

• why people save—and why they don't
• the benefits of starting your savings early
• guidelines for a savings plan that works for you.