Saving vs. Investing

Author(s): Central Bank Of Barbados
Created Date:18 Mar,2024
Views:32
Category: Saving and Budgeting,
MoneySmart Blog MoneySmart Financial Literacy
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Saving and investing are both ways you can help secure your finances, but they aren’t the same thing.

Saving involves setting funds aside to use as needed or for emergencies. Think of it as having money in reserve. On the other hand, the goal of investing is to have the money you put in earn you more money.

Here are three things that differ between the two:

Duration. Savings are typically used for short- or medium-term goals while investing is usually with long-term goals in mind.
Returns. Savings accounts generally offer lower returns than investment instruments.
Risk. As a rule, there is less risk associated with saving than with investing due to the level of return on investment they each offer.

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