Imagine that you unexpectedly receive money and currently have more than usual. What will you do? If you decide not to spend it right away, but to save it because you want to buy something important to you later, then you already understand the meaning of saving.

 

Why is saving important?

Saving means setting aside some of your money now so that you can use it later for something that is bigger, more expensive and important to you – like a new tablet, a bicycle, a class trip or a course. With the funds saved, you will be better prepared to choose what you like.

You can save in a regular or digital piggy bank, but it is even better to keep your money in a bank account. There are also mobile apps for children, where, with the help of your parents, you will be able to track the money in your account and periodically transfer amounts to its savings section.

If you have a savings account opened in your name, you will be able to access this money when you turn 18. It is wise to use it for something important – such as a university education. What is even better is that the money you save will increase over time, as it will earn interest. The interest on your savings account is a small amount that the bank gives you because you keep your money with it.

There are two main types of interest – simple interest and compound interest. Simple interest is earned only on the amount initially deposited, while compound interest is not only on it, but also on the interest that has been already accumulated. This way, your money will “work” for you and will grow on its own.

Although the increase may not be large at first, over time the difference becomes more and more significant.

 

Why is it important to have a goal and a savings plan?

It is much easier to save when you have a clear goal. For example, you want to buy a bike – that is your goal. Check how much it costs and estimate how much money you can set aside each month. Divide the price by the amount you will save monthly and you will see how many months it will take you to save the necessary funds to achieve your goal.

When you set a clear goal, it is much easier to give up unnecessary purchases because you know that every amount saved brings you closer to your dream.

 

What affects savings?

There are some things that can help or hinder saving. For example, inflation, which is the increase in prices of all goods and services over time. This means, for example, that after a year the bike you want to buy may already cost more and the money you saved may no longer be enough for you because it has lost its value.

When money is in a savings account for a longer period, part of this loss will be overcome thanks to the interest received. Interest is calculated as a percentage of the amount invested. The higher the interest rate, the more you will earn on your money.

Your own habits are also important when it comes to saving. If you are easily tempted and, for example, buy things just because your friends have them, it will not be easy for you to save. However, if you regularly track your expenses and evaluate each purchase, you will be able to allocate more easily to saving, respectively, to achieve your goals.

Different methods have different levels of security and growth opportunities. A bank is a safer place, and saving at home is easy, but it is riskier because you can be more easily tempted to spend it, and it is also possible that unpleasant things such as theft, fire, or flood can happen and destroy it.

 

What is investing?

When people want their money to “grow” more than in a savings account, they can invest it. This means putting their money into an investment that can bring them more money in the future, but on the other hand, they take the risk that its value will fall and they will lose it. The investments that adults invest in are very different - real estate, parts of businesses, gold, etc. You may also be investing in something without even suspecting it. For example, if you collect comics, cards, LEGO, retro games, they can increase in value over time if they are rare and well-preserved. So if you sell them then, you will get much more than they were worth when you bought them.

There are fun investment games for children on different platforms. However, always check with your parents first what the game is and whether it is suitable for you.

Knowledge about saving and investing can help you make better decisions about your money and manage it more confidently now. If you use your money wisely and make sure it "grows", one day you will have financial freedom, peace of mind and more opportunities.