• What is savings?
• Types of savings
• Importance of saving
• What is investment?

We explain what savings is and what types of savings exist. Also, why is it important and what are its differences from investing.

organization or an individual, in order to accumulate it throughout the weather and then use it for other purposes, which may be recreational expenses, important and eventual payments, or solve an economic emergency.

Saving is a common practice and also an important concept in economic theory, understood as the percentage of income or income. entry that is not intended for consumption. That is why there are different forms of saving and financial instruments have even been designed whose specific role is to allow or increase the desired savings.

Normally, saving is made up of the surplus of money or resources accrued during the production process, whether national, business, family or personal. However, the excessive desire to save, sacrificing important or necessary expenses that could well be covered, are linked to greed and are culturally frowned upon.

Its origins as a practice are closely linked to the origin of civilization, prior to the existence of money, so that goods from the harvest were actually preserved for later consumption. The first savings and loan society emerged during the 15th century, as part of the new order brought about by the Bourgeois Revolutions, and was a precursor to the current ones. banks. Saving and accumulating capitals was key in the constitution of capitalism early as an economic system.

Types of savings

Two forms of saving are normally distinguished: public and private.

• Public savings. He is the one who performs the Condition, from the income of the International Trade, of the taxes its citizens or other economic activities. When the State saves resources it is because it has covered its basic needs of operation and assistance (public spending), and there is still a surplus or excess resources. Otherwise, there is talk of deficit.
• Private savings. It is the one carried out by private organizations of different types, that is, those that do not belong to the public sphere. Broadly speaking, they do it families, non-profit institutions and Business. Said savings occur when the basic needs of the company or family are fully covered and there is a surplus of available resources.

Importance of saving

Saving encourages a more sensible use of available resources.

Saving is an economic planning activity vital for the survival of a productive system in the weather, since it entails the possibility that part of the resources produced are not consumed or wasted, but are strategically safeguarded for the future.

For this reason, saving is encouraged at all levels, since it implies a more sensible and forward-looking use of available resources, which can be used to face future needs or which can be invested in new projects.

What is investment?

In economic terms, investment is a way of saving and postponing consumption, which consists of exchanging the additional resources available for goods whose value does not decrease or even increase over time, such as property, foreign currency, business shares or various instruments. financial investment, such as bank time limits, for example.

The logic Investment dictates that the money can be exchanged for goods that can then be sold again, or that can even generate dividends, thus recovering the investment and multiplying the money saved. It is a usual procedure in countries with high inflation rates or with currencies in the process of devaluation, since the goods are not affected by the loss of purchasing value that does affect money.

Likewise, it is a common way among companies and people with high purchasing power as a form of savings, since the money invested in investment goods cannot be consumed on a daily basis or in superfluous expenses.