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 of 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 powers

  • Convenient place of investment

Other Facilities offered by Financial Institutions

  • Credit card

  • Debit card

  • ATM card

  • Loan

  • e-banking

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