Some people save money to afford some expensive goods they will need in the future or to buy for a special event. For example, young men save money to buy beautiful engagement rings to their fiancés while parents save money to pay for their daughters’ weddings. Some couples also save money to have the deposit required to buy a house. On the other hand, there are people who save money just for the pleasure to have a lot of money, and they are not planning on buying anything with that money. This saving affect the economy because it decrease the quantity of money in the economy. For example, there are people who keep all their money at home because they want to see their money at all the time want to. They do not believe their money is safe in banks, and they do not want anyone to touch their money. In a column titled “Why Saving is Killing the Economy,” senior writer Chris Isidore states that the increases in savings that accompanied the onset of the recession might make sense to each individual household, but are collectively problematic “when what the economy needs most is for consumers to be spending more freely”
Some people save money to afford some expensive goods they will need in the future or to buy for a special event. For example, young men save money to buy beautiful engagement rings to their fiancés while parents save money to pay for their daughters’ weddings. Some couples also save money to have the deposit required to buy a house. On the other hand, there are people who save money just for the pleasure to have a lot of money, and they are not planning on buying anything with that money. This saving affect the economy because it decrease the quantity of money in the economy. For example, there are people who keep all their money at home because they want to see their money at all the time want to. They do not believe their money is safe in banks, and they do not want anyone to touch their money. In a column titled “Why Saving is Killing the Economy,” senior writer Chris Isidore states that the increases in savings that accompanied the onset of the recession might make sense to each individual household, but are collectively problematic “when what the economy needs most is for consumers to be spending more freely”