Final answer:
Savings refer to the money individuals set aside for future use, typically in bank accounts, while investments involve allocating money or resources to assets or ventures with the expectation of generating profits or income. Investment options can include mutual funds, stocks, bonds, real estate, and tangible assets like gold.
Step-by-step explanation:
Savings: Savings refer to the money that individuals set aside for future use. Savings options typically include bank accounts, such as checking and savings accounts, where individuals deposit money and earn interest on their savings. Other savings options may include certificates of deposit (CDs) and money market accounts, which offer higher interest rates than regular savings accounts but may have specific conditions or time frames.
Investments: Investments involve allocating money or resources to assets or ventures with the expectation of generating profits or income. Investment options can include mutual funds, which pool together money from multiple investors and invest in a diversified portfolio of stocks and bonds. Other investment options may include stocks, bonds, real estate, and even tangible assets like gold.