In the modern world, it is believed that financial reserves are essential for every individual including youngsters. Personally, I totally agree with this statement for some reasons mentioned in this essay.
On the one hand, savings play an essential role in personal development, especially for young people. Firstly, learning to set money aside helps to enhance financial management ability. People who save money often gradually develop the mindset of spending and investing in smart ways, which makes them better at financial management and might avoid unnecessary expenses. In addition, owning an amount of reserved money allows them to have more freedom and confidence. This is because financially independent individuals do not have to rely on anyone so they can make their own choice and pursue their desired life.
On the other hand, financial planning may be useful in many situations. First of all, having an emergency fund is very helpful in urgent cases like being sacked, being sick or helping family and friends. In fact, according to some surveys, about 40% of employees do not have any savings, which makes them have to lend or sell their properties to handle unexpected situations which often leads to a huge financial burden later. Last but not least, accumulated savings are necessary for long-term goals in a person’s life like studying abroad, purchasing valuable assets like a house, or a car or getting married and having children. Without a life-long plan for financial reserves, it is very hard for an ordinary person to achieve all those things.
To sum up, I hold a firm belief that reserving a partial income is vital for everyone in all aspects, including self-enhancement and attaining personal goals.