Saving and Investing!
By Kaitlyn Murphy
Why They're Important
Saving gives banks the money they need to loan to other people. When businesses take loans, they are usually looking to build or create a new facilities that in turn produce more jobs. After those people get paid, where do you think they put their money? Right back into the bank. Other benefits from saving include helping you reach important goals, assisting you in hard times, or funding your retirement.
Investing is another important route for our economy. By putting your money somewhere that it can grow, you have higher chances for making more money. Investing boosts the economy by allowing the businesses or stock you're investing in to have the money they need to create more jobs, etc. and you in turn make money. Particularly if you invest in government bonds, it allows for the protection of our country when the government maybe needs to fund a military activity.
Investing can be a risky business if you don't know what you're doing. Securities are investments that give their holders the right to receive some form of return or profit. The two most common types are stocks and bonds. People who invest in securities count on getting back the amount they investing in, plus interest. But, if the price of the product they counted on goes down, they could lose that money. This is where risk comes into the picture. So, the higher potential you have at making a reward through an investment, the higher the risk of losses. So word of advice is to weigh the risks when investing and don't always count on the potential rewards.