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In this fast-paced, consumer-oriented world, saving money is difficult for even the savviest consumers. With easy access to credit and pressure to have the newest and best of everything, saving money can be a challenge. It's important to remember that saving is not only a way to protect against risk and take care of financial responsibilities, but it’s also an avenue for fulfilling your future goals and dreams.

Unless you have a lot more money than you need, saving can be a challenge because it often means not spending money on something you want and setting money aside for something else—or delayed gratification. Once you start saving and see your money grow, you will know it’s worth the effort.

The simplest way to start is by opening a savings account at a bank, where you earn interest on your money. Another popular savings account is a certificate of deposit, or CD, which offers better interest rates than a regular savings account but requires you to keep your money in the account for six months to one year. Money market accounts are similar to bank savings accounts but usually require larger deposits. The interest rate on money market accounts is higher than for a regular savings account. It is also possible to have money deposited automatically into a savings account when you receive a paycheck, so that money is never perceived to be available for spending. Compound interest—or earning interest on your interest as well as on the money you deposit—can help make your savings grow even faster.

Let’s look at some of the reasons to save. The first one is financial security. This is essentially insurance against unexpected financial calamities. Life can be full of unexpected events, which can include financial problems like job loss or unexpected bills. For this reason, some financial experts recommend having an emergency fund – or a financial “safety net” – of three to six months worth of living expenses.

It is also important to save money for any future financial goals. You may want to buy a car or own your own home, start a business, finance your children's education, save for retirement, or even go on your dream vacation. Goal-setting is an important part of this savings dynamic. It is not always easy to come up with the large sums of cash needed for these financial goals in a regular salary payment. But it is possible to put away some money each month, which will eventually grow into the amount you need to achieve your goal.

Saving is critical for your financial security. But it can also help you afford your dreams. Saving money requires discipline and planning, however there are many mechanisms available to help you become a responsible saver.

• What is the purpose of saving money? Why should you not spend all the money that you have at any point in time?
• Describe some of the different methods of savings that D. Woods uses in the video.
• What is a financial cushion? Why is it important?
• What are some of the suggestions given in the video regarding controlling spending and increasing savings?