Saving vs. Investing

The main difference between saving and investing is:

• Saving is for short-term goals, while investing is for long-term growth.

• Saving involves risk, while investing is risk-free.

• Saving offers higher returns than investing.

• Saving and investing are essentially the same.

Why should you consider building your emergency savings before investing?

• To ensure financial security in case of unexpected expenses

• To maximize investment returns

• To take advantage of market opportunities

• To avoid paying taxes

What is the purpose of saving according to the text?

• To spend more money

• To prepare for future needs

• To waste resources

• To avoid responsibilities

According to the text, what should you do before starting your investment strategy?

• Research different investment options

• Consult a financial advisor

• Set clear financial goals

• Evaluate your risk tolerance

Which of the following is a reason to save money?

• To buy stocks

• To pay for emergencies

• To invest in real estate

• To increase risk tolerance

What is typically used for smaller, near-term goals like saving for a large purchase or an emergency?

• Saving

• Investing

What involves minimal risk and may be insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor?

• Saving

• Investing

What is usually used for long-term goals, such as paying for a child’s education or planning for retirement?

• Saving

• Investing

Explain the difference between saving and investing in terms of access to funds.

• Saving typically allows easier access to funds, while investing may involve restrictions or penalties for early withdrawal.

• Investing typically allows easier access to funds, while saving may involve restrictions or penalties for early withdrawal.

• Both saving and investing offer the same level of access to funds.

• Neither saving nor investing allows access to funds.

"Saving" means:

• Putting money aside for future use

• Spending money on essentials

• Borrowing money from others

• Investing in stocks