What do young people need to understand about savings and investments?

Boys and girls need to distinguish between savings and investments in order to manage their finances wisely. Savings are money set aside for the future and kept in a safe place, such as a bank, to be used for emergency expenses or significant purchases. The value of these assets usually remains stable and immune to significant fluctuations, although they do not increase appreciably due to low interest rates.

Capital investments, on the other hand, are investments of funds in values or resources with the intention of earning income or increasing initial capital. Such investments are intended to achieve long-term financial goals, such as buying real estate or paying for education. When investing, there is a risk of loss due to market fluctuations, but proper allocation of resources between different assets can reduce this risk. It is important for young people to understand that while savings support short-term financial security, investments help realize long-term financial ambitions.