Saving money


Why save?

Money is itself a convenient means of saving wealth. Other things of value, such as food
or animals, cannot be kept for ever, but coins will last for long periods without deteriorating. This is shown by the thousands of ancient coins dug up every year. But money does need
to be looked after. It might fall into the wrong hands, or the temptation to spend it unwisely may be too great to resist. More simply, it might lose its value.

What to save?

Money is not necessarily the most sensible material to save. Its value seems fixed, but
the same sum of money may not always buy the same amount. There is little point in saving
if it will buy less as time passes. It may be better to save up what you will need, or some other durable commodity whose value in money (or, better still, in other commodities) will increase.

Where and how to save?

Where should you put the money you save? You could just hide it. Or, to be safe, you could give it to a bank to look after. But neither choice would take account of the money`s tendency to lose its value. The way around this is invest your money: to exchange it for something whose value will last or increase, or lend it at interest, so that you get back more than you lent.

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