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Answer:
Investing vs. Saving
Step-by-step explanation:
SAVING
- Your "savings" are usually put into the safest places or products that allow you access to your money at any time.
- Examples: savings accounts, checking accounts, and certificates of deposit.
Investing
- When you "invest," you have a greater chance of losing your money than when you "save
- The money you invest in securities, mutual funds, and other similar investments is not federally insured. You could lose your "principal," which is the amount you've invested
- Examples: stocks, bonds, mutual funds, interest-bearing accounts, land, derivatives, real estate, artwork, old comic books, jewelry -- anything
- The biggest difference between saving and investing is the level of risk taken. Saving typically results in earning a lower return but with virtually no risk. Investing allow, the opportunity to earn a higher return, but risk of loss is a present.
- Savings are short-term and are used for emergencies and purchases, Investments are made to achieve bigger goals like building wealth, funding education, buying a house, etc.
- Saving means putting away money for later use in a safe place, such as in a bank account. Investing means taking some risk and buying assets that will ideally increase in value.
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