The Importance Of Saving Money

This report is about how regularly does teenager save and how to encourage them to save. It is also to investigate if students were taught about financial literacy and what could be done to encourage and motivate them to save.

Saving money is important so to prevent spent too much money, in case of emergency, the money also could be taken out. When students saw something they want to buy and is too expensive, savings could help them release the stress of owing money to someone and even buy it immediately.

Students might not have the habit to save so this report is targeted at teenagers and whether if people around them had thought them about saving. It is to aid schools in organising events to cultivate them to save.

2.0 Background Information

It is also a form of financial literacy when one understands how money works, what ways to use money and furthermore to make effective decisions regarding money.

An example of saving money will be that one could reduce on the amount of collectibles cards they purchase and even resist to buy whatever new product their friends own.

2.2 Importance On Saving Money

Money is saved for emergency or special events that you need large sums of money, for example students would want to go the Universal Studios but discovered that they do not have enough money in their pocket. Money can also be saved to purchase expensive items that are too costly to buy with monthly income. Saving from own pocket market will allow purchases for something overpriced or cost more than pocket money such as the latest smartphone, games, watch, even bags. Money savings could also be spent at the end of the year to enjoy from buying the things long awaited to having a party together with friends.

3.0 Measures to help students save money

3.1 Financial Literacy in

This internet research is subjected to only Chinese and Americans as they have different cultures, habits and could show a difference in habit of Asian saving money. Research from Chinese Consumer Finance and Investor Education Survey has shown that 60 percent of household save for safety reasons, while Survey of Consumer Finances conducted in America at 2007 has shown only 35 percent if the people saves. The reasoning from the results are that U.S. provides unemployment insurance and welfare programmes while China does not provide such services and people has to save for their families and also to save for education purposes. Students in Asia also tend to not use credit cards that much, as it encourages them to spend over their budget. Evidence from other research has shown that by saving, they have a much higher income. Since Asians has faced difficulties in life such as the Nanking Massacre and a lot of other historical events, they formed a habit of saving money for emergencies, and of course the habit is passed from one generation to another. When students return to their home, their parents will often teach them about savings, such as depositing the red packet money into the