Why We Save
Like you and the Viva Kids gang, lots of people save money. This means that every day they decide whether to spend their money or to save it. There are many different reasons why people save up:
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Save for the Things That You Want
CloseYou have already learned that you can save up for the things that you want. However, people also save money for larger purchases, like a new car, or for an experience, like an amazing vacation.
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Saving for Emergencies
CloseSome people save up for emergencies or unexpected events. For example, people save for repairs to their cars, bikes, or apartments. This is called precautionary saving. Ask your parents about it.
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Saving for Old Age
CloseAs people get older, they eventually can't work any more and go into retirement. However, they still need money to live. Therefore, lots of people save for old age when they are young. This is known as retirement provision. Your parents are certainly saving for old age too.
