When people think of savings, they often think of savings accounts and putting money in a deposit at the local bank office. However, there is more to saving than just a basic savings account. Here are 10 things to know about savings in general:
- Savings in a bank is insured by the federal government up to $250,000 per account.
- Savings can be deposited in a basic bank account as well as a certificate of deposit or a government bond, all of which are protected.
- Savings can be generated by reducing personal spending as well as earning more income.
- Prevention can generate savings in avoided costs in the future.
- Savings can be stored in financial assets as well as physical assets.
- Interest can be generated from growth of savings, which can then be taxable.
- People on average don’t save near enough for retirement.
- Potential savings don’t count unless they actually manifest into real cash or gain or cost avoidance.
- Savings can be put into investments, such as stocks or funds, but they aren’t protected from loss of value tied to the market.
- The biggest savings people on average work towards involves buying a home.
Pierce Insurance Group also understands insurance can help people save from unexpected costs in life. Give them a call to learn how.