The Importance of Saving

_________ is the amount of money you set aside for a purpose.

A savings account at a bank earns interest and can be accessed with ease at an ATM.

A Certificate of Deposit is another type of savings account, which earns less interest than a savings account.

What type of account allows you to save for your retirement, independent of your employer, with tax-free growth, or on a tax-deferred basis?

A 401K contribution can be deducted from an employee’s paycheck each pay period to be set aside for retirement.