CashVille Kidz Episode 22: Saving vs Investing
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In this episode, students discover two methods to pay themselves first. Saving and investing. Both have their similarities and differences.Savings is a Short-term, low reward method to grow your Money. Savings are also low risk.
Investing on the other hand is a medium to long term, usually higher reward method to grow your Money. Investing also has higher risk. Investing allows you to put your money to work for you.
Saving reduces your present spending while investing hopes to increase your future spending.
The similarities between saving and investing are both Savings and Investing involves putting money aside. and the intention is the same.
There are also some differences between saving and investing. Savings are considered LOW RISK while Investing involves HIGHER RISK and the Interest or Returns on Savings are normally fixed while Investments have Higher Returns.