Question

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Online Content: Site 1

Describe the difference between saving and investing.

Answer 1

A "Savings" is when you put your money in a safe place and it would also be a place that you could access whenever you want to. Some examples are CD or certificate of deposits, checking accounts, and savings accounts. Many banks will insure your accounts through the FDIC. There is a cost associated with the safety and accessibility of these saving types: the low wage your money earns while working for you.

Investing is more of a risk and you have more of a chance of losing your money than when you have it in a savings type account. The money isn't insured by the FDIC when you put it in mutual funds, securities, etc. You may even lose the money you invested even if it's with a bank. There is also a chance to earn more money investing than you would with a savings account. The downfall is that there is more of a risk but also the chance of a larger return.

Step-by-step explanation:

Answer 2

personal answer: saving could be limiting the money you spend and keeping it somewhere safe instead, and investing is putting money into something to see more money as an outcome

“Saving can also mean putting your money into products such as a bank time account (CD). Investing — using some of your money with the aim of helping to make it grow by buying assets that might increase in value, such as stocks, property or shares in a mutual fund.”