Savings Plan

« Back to Glossary Index

A savings plan is a financial strategy that helps individuals or families set aside money for a specific purpose or goal, such as retirement, education, or a major purchase.

A savings plan typically involves setting a specific savings goal, creating a budget, and allocating a portion of income towards savings on a regular basis.

This can be done through various methods such as setting up a dedicated savings account, automatic transfers from a checking account, or investing in a retirement account or other financial instrument. The amount of money saved each month can be adjusted based on changing financial circumstances and the progress toward the savings goal.

A savings plan can help individuals or families achieve their financial goals and prepare for unexpected expenses or emergencies. It is important to have a clear understanding of the savings plan and to stick to the budget in order to achieve the desired outcome.

« Back to Glossary Index