So, you should not only limit yourself to saving in a bank, because the benefits of saving in a bank are different from insurance which has protection benefits and is equipped with investment. Currently, there are many insurance products that are also equipped with savings features, both for children's education savings and old age savings features. For example, investment instruments such as mutual funds or stocks, as well as insurance bundled with a savings feature. Therefore, it is also good to consider other instruments as "vehicles" of saving to offset the rate of inflation. Thus, saving in the proper sense is setting aside a portion of today's income to adequately anticipate future needs taking into account long-term inflation rates. However, in the next 10 or 20 years, will that amount of funds still be sufficient to finance the same needs? If it is assumed that the inflation rate or the average increase in the price of goods per year is 6% and the reference interest rate is 4%, then the Rp 1 million fund in the next 20 years will decrease in value to the current equivalent of Rp 683,203. Your fund of IDR 1 million today may be sufficient to buy food needs for 1 month, for example. The problem is, there is an inflation factor that is often ignored.
If setting aside income is intended to anticipate future needs, then you need to make sure the funds saved are adequate for those needs. However, today this understanding is not always correct. A few decades ago, saving was synonymous with placing funds in a bank account. Saving is basically setting aside a portion of today's income to anticipate future needs, both unforeseen and unforeseen.