Posted by Lucy McOuat Young Enterprise Scotland · Saving
Published: Tuesday, 29th November 2022, 1:05pm
Savings or Saving?
It is easy to confuse the terms saving and savings.
Saving is often thought of as the act of putting away money for future use. This might range from a few pence being kept in a money box at home, to a larger amount being placed in a bank account.
Saving can also refer to reducing the amount you spend, maybe allowing you to put some of that money away for future use.
Savings refer to the amount or value of the money that is being put to one side. If you have put £50 into a bank account this is your savings. If you then arrange to put in a further £10 per month then that is the amount you are saving. In this example, at the end of the 1 year you would have saved a further £120 (£10 x 12 months) on top of the initial £50, giving you a total savings amount of £170 altogether. This is the amount that is said to have accrued.
Reasons to save:
- For a very specific purpose or to help achieve a particular goal
- To gather together wealth for future use
- To put money aside for unplanned events
- To keep your money safe
The simplest way to save is to put some cash to one side at home. This is usually fine for small amounts, but becomes increasingly risky as the amount of savings becomes larger. Cash in the home is at risk of being stolen or lost, and it can be difficult to keep track of exactly how much you have to know if any is missing. That’s why many people choose to keep their money in a safer place such as a bank, building society, credit union or post office.
Did you know?
Banks, building societies, credit unions are the post office are all organisations that provide financial services, including the ability to save, but are structured differently.
A bank is an organisation owned by its shareholders. It aims to maximise profits for its shareholders through its financial activities.
A building society is an organisation that is owned by its members, some of whom will be customers who save money with or borrow money from the society. They often offer a range of financial services and are similar to banks.
Credit unions are community focused, non-profit making organisations that encourage saving and lend money to members. To use a credit union, you have to become a member. Credit unions are very popular in Scotland. There are over 400,000 members spread amongst over 100 different credit unions.
The Post Office is owned by UK Government Investments. It provides people all over the UK with access to many essential services including a range of ways to save your money, both at post office branches and in online accounts.
This is an excerpt from the Your Money Matters textbook, register as a member to access your free copy.
