Saving vs Investment

Savings

A portion of current income not spent on consumption

Bonds

A security representing a loan of money from a lender to a borrower for a set time period, which pays a fixed rate of interest.

Mutual Funds

An investment that pools money from several investors to buy a particular type of investment, such as stocks

Stocks

An investment that represents ownership in a company or corporation.

Real Estate

An investor buys a piece of property, such as land or building, in hope of generating a profit.

Interest Rate

Percentage rate paid on the money saved or invested expressed as an annual percentage rate.

Interest

Price of money

Principal

The original amount invested, borrowed, or saved.

Investing

The purchase of assets with the goal of increasing future income

Collectibles

Unique items that re relatively rare or highly valued such as art work, baseball trading cards, coins, automobiles, antiques.