Saving is for long-term goals; investing is for short-term goals

Saving earns a much higher rate of return than investing your money

Saving guarantees you the money you put away while investing has no guarantees.

Saving earns compound interest while investing earns simple interest

Compound interest is earning interest on the original amount you deposited.

Compound interest is earning interest on the original amount you deposited plus any interest earned.

Compound interest is the amount of interest you are charged on your bank account each month.

Compound interest is earning a fixed dollar amount on your bank account each month.

A stock is a type of investment that uses money from investors to purchase many different investment types.

A stock is an insured bank account with high risk.

A stock is a lending investment to the government or a company.

A stock is a share of ownership in a company.

Bear Market

Bull Market

Pig Market

Sheep Market

He will need a large amount of money to invest in individual stocks.

Purchasing individual stocks has a very low amount of risk and a low return.

Purchasing individual stocks has a high amount of risk and little diversification.

He will need to open multiple brokerage accounts for each stock he purchases.

Bonds are one of the riskiest investment types, but have the potential for a high return.

Bonds have a low to moderate amount of risk and are less risky than stocks.

Bonds have a moderate amount of risk, but are a riskier investment when compared to stocks.

Bonds have no risk.

Through interest collected on your original investment.

Through dividends.

By selling your shares in the bond.

By purchasing a diversified bond type.