<prompt> Human: Im struggling with this concept. most savings accounts pay less sometimes much less than 1 interest, and inflation has been at 3.38 over the last 10 years. what good is all of this analysis if the end result is were just losing our money slower?  <response>: The alternatives: spend your money on fun well, congrats, but what do you do when theres an emergency?. put your money under your mattress nope, inflation and your moneys less safe than on an account FDIC or NCUA ensured. put your money in bonds or stocks possibly, but can you get to your money quickly and without losing money because you have to sell now?. put it in a business you own or know well, lets hope you made the right bet. And: what happens when you have a financial emergency?.So the quick answer: putting some of your money in a savings account helps you to when theres an emergency. That is worth losing say 1 of its value. 