A savings plan refers to a strategy or method that individuals, families or businesses use to save money over time. This can involve setting aside a portion of income each month into a dedicated account, investing in assets such as stocks, bonds or real estate, or participating in programs like 401(k) retirement plans offered by employers that allow for tax-deferred savings and sometimes matching contributions. The goal is to accumulate funds over time through regular deposits, interest earnings, dividends, capital gains or other means of investment growth so that the individual can achieve their financial goals such as buying a home, paying for education, or retiring comfortably.