Chapter 13: Saving and Spending

Saving happens when a person saves his money instead of spending it in order to keep it safe and spending it later after a juicy interest rate. Normally people save up to 10% of their income. People may decide to save for the following reasons:

• Buy a big purchase like for example a house
• To benefit from high interest rates
• To have reserves and a better financial situation

Spending is an easy to understand topic although some people Borrow to spend.
Borrowing is a nice help to purchase a good or service when you do not have enough cash availability. This therefore has a price: Interest rates.
The higher the interest rate, the more you will have to pay for your money. Thats why if you dont receive high and secure wages banks will try to avoid you


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