Saving and Investing - People save and invest to have enough money at some point in the future to pay for the things they want or need. While you might hear the two terms used interchangeably, saving and investing are overlapping yet distinct concepts that involve different processes. Stated most simply, saving is the act of putting aside for another day some of the money you earn or receive as gifts, while investing is the act of choosing products and strategies to make that money grow.

If you have specific financial goals that will cost money—such as purchasing a car or a home, paying for college, or building a secure retirement—accumulating assets and building wealth through saving and investing is the key to achieving those goals.