3. Savings. Some people save up for specific things like buying a better house, a better car, getting your kid into a better school among other things. Some people may just save for the sake of having money to pull for emergencies. I think emergency money and money I want to use into building a new home should be separate.
If you are saving you better convert to stable coin before inflation will reduce it value. But again you can keep it in btc by which you can have more value for it incase price rises or you split into btc and stable coin but definitely not fiat. If you want to build house I'm don't know how much you want to save that you won't touch it or that inflation will allow you to have same value from when you started saving it. Instead you can reinvest that money you want to save onto buying of land and you are likely to have more gain from it. As to changing children school, well that may not require lot of money and time compared to money proposed for building, so you can save or gather that up.