Savings

Savings: save and manage money in the bank. [Save money with little gains]

pros: Will be given a fixed percentage of your gains depending mainly on the interest rate. [Certain]

cons: small & slow gain(Not enough gain to survive). A small risks of the bank "crashing", taking your money with them. Only ONE way of saving

Investment

Investing: saved and manged by oneself. [Spend, sell, trade, share... Gain or lose]

pros: might get big gains from investing in a successful company. More than one way to do it

cons: Will have an uncertainty of gain or loss. Highly dependant on the economy and the company you're investing.

2 main types of investments

1. Stocks
A stock is an investment in a specific company. When you purchase a stock, you’re buying a share — a small piece — of that company’s earnings. Investors can then buy, trade or sell those shares among themselves. Stocks sometimes earn high returns but also come with more risk than other investments. Companies can lose value or go out of business, causing investors of their company to lose money too.

2. Bonds
A bond is a loan you make to a company or government. When you purchase a bond, you’re allowing that company or govermenr to borrow your money and pay you back with interest.

*Inflation: a general increase in prices and fall in the purchasing value of money.

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