the economic life cycle has three phases - Student Phase, Working Phase, Retirement Phase
Savings may be considered as a composite of two decisions - Postponement of consumption,Parting with liquidity
Postponement of consumption: an allocation of resources between present and future consumption
Parting with liquidity in exchange for less liquid assets. E.g. purchase of a life insurance policy implies exchanging money for a contract which is less liquid. Financial planning includes both kinds of decisions.
Financial products - Transactional products - Bank deposits and other savings instruments that enable one to have adequate liquidity
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