Savings is a wise financial strategy, as it refers to putting money aside in a secure banking account in case of future emergencies or needs. Nobody knows when a rainy day will come, when your car dies, when you lose your job, when your house floods, when you have a medical emergency, etc. That’s part of why it’s recommended to save.

There are different recommendations about the amount or percent of our income we should save, but a common practice is to at least work towards having $1000 in an emergency account. From there, it’s often considered good advice to save enough for 3-6 months of your normal expenses.

Savings options range, but high-yield savings accounts are utilized most often. Interest rates vary per bank and account, and they change based on the current economic conditions.