What is a primary purpose of saving money?

The primary purpose of saving money is to accrue interest and prepare for future expenses. When individuals save, they typically place their funds in savings accounts or other financial instruments that allow their money to grow over time, usually through the accumulation of interest. This growth not only helps build a financial cushion but also equips individuals to handle anticipated future expenses, such as emergencies, major purchases, or retirement.

Saving with a clear financial goal in mind promotes responsible money management and fosters financial stability. It encourages individuals to set aside a portion of their income regularly, which can lead to a more secure financial future. Additionally, having savings enables people to take advantage of opportunities or to handle unforeseen circumstances without incurring debt, thereby reinforcing the importance of saving as a fundamental financial practice.