Savings can be an umbrella for a rainy day.

"I never save any of my money. Who needs it. The old people maybe. But young people like me do not need to save. I have strong arms and body which will get me employed anytime."

It was obviously the positive but unrealistic voice of an immatured person. In fact, it came from someone who obviously needs savings should anything happen to him. A strong body is important but if a person's pay comes not from some kind of skill but only through his strength, then such type of work can be done by almost anybody; he can be replaced anytime.

When there is a monetory crisis like the present time, people think of the future. To those in the private sector, it could be a threat to employment. Demand for goods decreases and manufacturers find they have too many workers with too little work. Sales and profits decrease but the same number of workers need to be paid. So, to prevent losses, there has to be retrenchment. The days of work may be reduced and so the pay lessened accordingly.

When it comes to retail, people are more careful with their money and will not buy unnecessarily. This is the time when savings is seen as such an important responsible act. When people are retrenched or out of a job, food and everyday necessities continue to be important for sustaining life. Without savings, a retrenched worker will be in trouble.

So, savings is important not only for independence as one grows old. It is essential to tide over a financial crisis or as a capital for starting a new income generating venture.