The Benefits Of Spending And Saving:


In 2008, the economy was altered and resulted the financial crisis that occured 10 years ago. This created a rise in unemployment and homelessness in Europe. Therefore, the whole of Europe needs to know the appropriate times to save and spend and the benefits so the Bank Of England won't have as much trouble earning and loaning money like during 2008 and 2013.

What are the benefits of...


  • Saving money can help you start a life financially if you are young. New products start off expensive, and normally go down in price once people have started buying it. If you need this product you can save( and wait), and once it's lower in price, you will be able to purchase the item.
  • Also you will have a financial back-up if you lose your job which can still help you to buy the essential things that you need. In addition, you will be ready if your circumstances alter. For example: if you have been living with your parents- while having a job- once you decide to buy your own apartment/house/flat, you will have the money for it.
  • As well as all of the reasons I have wrote for you today, once you have had a life and you are ready to retire, you can use the money that you having been putting in you pension to still be able to buy food, water ect, in the future.
  • Although this is half-fact, half-opinion, it will reduce your financial anxiety. For example: it prevents having to worry if you are in need of money. Furthermore, not just helping the whole of the UK, it helps the Bank Of England because they will earn more money by not giving it all away.


Spending money helps those dedicate themselves to the discipline of economics.

  • Bussiness:

When people buy things on the street, paying for whatever they are buying, helps the entire community. When the bussiness earns money, it can help them invest in it to make the bussiness bigger and better, which persuades the enntire econamy to buy more things.

  • Bank:

As we have learnt in our topic this term, when bussiness go down the bank's earn less and causes it hard to loan. But if people buy more things, the bussinesses earn more, then they give some of their money to the bank which makes them earn more money. Furthermore, this will help prevent another crisis occur in Europe.

  • Goverment:

As the banks will earn money, the goverment will to... but how?

When the banks pay back the govrment, they will be able to use the money to upgrade how the econamy is.

Spending money causes a cycle in the system of the community: the Goverment reinvest the money tht we have used to buy things to improve the econamy in many different ways. For example:

  • The education
  • The NHS
  • The Argiculture( animals, plants ect).
  • The inferstruction
  • The companies/bussinesses.

The Disadvantages of...


Through the duration of time, it is known that the more money you have, the higher amount of tax you have to pay to the goverment, which can highly affect what you can buy and how much of it.

  • Spending on credit

When you recieve a credit card, it is the money that the bank owns, not what comes from your salary. If you use your credit( the money you don't have) you are making the loan you have to pay to the bank bigger; which is making you become bankrupt. Furthermore,once you have run out of the money you used from the credit, the bank would've already take all the money from you salary. Therefore, you will not be able to buy anything else and won't be able to pay tax, this results the bank taking anything you own to make up for the money you didn't pay.

Advantages of...

  • Spending using your salary

Using your salary is completely opposite of spending with your credit. When you use your salary to buy things, you can use your credit to pay tax. Furthermore, once you have paid back money to the bank, you will still have enough money- using you salary- to pay for the things you need. Therefore, you will have used the appropriate method to spend money when needed; which results you not becoming bankrupt and not losing your home or job or bussiness, if you have one.

Disadvantages of...

  • Saving:

Should we keep cash in our savings account?

  • Money in a savings-account has less purchasing power.
  • It's only protected up to £85,000.
  • Interest rates are not expected to rise any time soon.
  • There are always rules when having a savings-account.

Although saving and spending both have advantages and disadvantages, people have to know when right to spend or save in any circumstances, and I hope the presentation I have writen today helps people know the appropriate times for themselves.

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