Question

In two or more complete sentences explain the similarities and differences between saving money and investing money.

Answer 1

Saving money is just putting money away, with investing you give someone money in hopes to make more money.

Answer 2

Similarities: In both cases the initial amount is changed after a period of time.

Differences : Saving money has no risk factor and investing money has risk factor.

Explanation:

If you put the money aside for future use rather than spending it immediately, then it is known as saving money.

For example : A saving account, a pension account, or as cash, etc.

If you put money to work to start or expand a business or project or the purchase of an asset, with the goal of earning income, then it is known as investing money.

For example : Business, real estate, etc.

Similarities: In both cases the initial amount changes after a period of time.

Differences : Saving money has no risk factor and investing money has risk factor.