Question

An old-fashioned method of saving money is to stuff it in your mattress or hide it in a cookie jar on the top shelf of your closet. But most financial consultants will argue against this method of saving your money. Why? Give an example of a better solution to saving money that might be advised by a financial consultant.

Answer 1

Financial consultants argue against keeping cash at home and suggest opening a savings account or investing in a certificate of deposit (CD) for safer and more effective saving methods.

Step-by-step explanation:

Financial consultants argue against the old-fashioned method of saving money by stuffing it in a mattress or hiding it in a cookie jar because it is not a safe or effective way to save. Keeping cash in your home puts it at risk of theft or loss, and it does not provide any potential for growth or earning interest. Instead, a financial consultant may suggest opening a savings account at a bank or credit union. This allows your money to be securely stored and can also earn interest over time. Another option they may recommend is investing in a certificate of deposit (CD), which offers a higher interest rate but requires depositing the money for a specific period of time.

Answer 2

To invest in stock or bonds so that you not only are saving money but receiving more money in return. Also instead of saving it in a cookie jar or something like that, you should put it in a savings account so that over time as you add more money into the account you will also be receiving interest for your money. They would advise you to do something with your money that will get you more money in return