What is a savings account?

When you're trying to get your finances in order, having a savings account is often a good idea, but it's not something that many people take as seriously as they should.

Plenty of data suggests who people who have good savings strategies and sizable balances in their savings accounts are likely to be ready for a financial emergency. Whether it's an unexpected hospital bill or car repair, something that totals a few hundred dollars or even more can be devastating financially to those who don't have robust savings stashed away.

Therefore, if you don't have a savings account, it might be wise to start one, and begin putting as little as 5 or 10 percent of your take-home pay into it each payment period. That might not sound like a lot, but it will add up quickly, and you'll be able to feel a lot better about your financial position in short order as a result.