Family Economics and Consumer Education

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Family Economics And Consumer Education 3 (2+1)

Lesson 09 : Planning for Family Financial Security-Savings and Investments

Introduction

Savings constitute a part of income set aside for meeting future needs. The other part of an individual’s income is used for consumption. Savings of an individual or a family depends upon the size of income. If income is high savings are more, savings depends upon individuals ability to save and willingness to save. Family investment is usually defined as a process of placing family funds in a more or less permanent form with expectation of assuming security of principal and of receiving a regular predictable return from it.

Definition: Saving can be defined as abstinence from present consumption for the purpose of future consumption.