Savings are the portion of disposable income not spent on consumption of consumer goods. It is accumulated or invested directly in capital equipment or in paying off a home mortgage. Or indirectly through purchase of securities.
According to Keynesian economics, savings are what a person has left over when the cost of his or her consumer expenditure is subtracted from the amount of disposable income earned in a given period of time. For those who are financially prudent, the amount of money left over after personal expenses have been met can be positive; for those who tend to rely on credit and loans to make ends meet, there is no money left.
You can use it for holidays, future expenses, or just in order to be financially secure. While saving is difficult, one should always try to save as much as their budget will allow.