Savings is Important

Hayden Cartt

What is Savings? What is Investing?

  • Savings- Proportion of income not spent on consumption. Savings are more liquid than investing. This means that savings can be more easily converted to cash.

  • Investing- The purchase of assets with the goal of increasing future income. in order for an investment to become as liquid as savings, usually there will have to be a longer wait period from when the money is first invested. This means that investments cannot be used in the case of an emergency.

Why Would I Need a Savings Plan?

  • Savings is what you will have to reach into if you ever have an emergency.
  • It also helps you to be able to pay for more expensive items such as a vacation.

PNC Bank: Individual Retirement Acoounts (IRAs)

  • Great tool to help fund retirement.
  • They hold potential tax advantages.
  • Withdraws before the age of 59 1/2 are subject to penalties.
  • Deposits can be made at any time with the IRA Money Market