Home Family and Home Science – Need for Saving, Investments & Role of Financial Institutions

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Money from the present income that is put aside for emergency or future use in known as savings.

Need for Saving

  • For a secure future

  • For meeting emergencies

  • Fulfilment of family’s goals

  • To raise the family’s standard of living

  • For starting a small business or for self-employment


  • You have learnt that your savings are not for present use. They are collected to be used at a future date. When savings are made to grow, it is called investment.

  • If you keep your savings at home

  • If does not grow

  • There is a chance of it getting stolen

  • There is a temptation to use the same to fulfil some present desire.

Role of Financial Institutions

There are a number benefits of keeping your money in financial institutions:

  • They keep your money safe.

  • They make your saved money grow by paying interest.

  • You can withdraw your savings as and when you need them.

  • They give you loans against your investments.

Common inverstments

Common Inverstments

Common inverstments

  • Factors Influencing selection of an investment Scheme

    • Your capacity to save

    • Safety of the in the investment

    • Higher rate of interest

    • Easy liquidity

    • Other benefits

    • The purchasing power

    • Convenient place of investment

  • Other Facilities offered by Financial Institutions

    • Credit card

    • Debit card

    • ATM card

    • Loan

    • e-banking