Here is another quote on savings and investment from the Securities Industry Association

( www.pathtoinvesting.org ). Critique and correct this statement in light of the definitions of saving and investment contained in the chapter.(Appendix)

Saving and investing aren’t the same—although they both play a role in your financial plan. While they both involve setting aside some of your income for the future, saving often refers to putting money in the bank—in savings and money market accounts—while investing means buying stocks, bonds, mutual funds, or other uninsured assets . . . While investing can help you achieve your long-term goals, saving is an effective way of managing your money to meet short-term needs and to provide a safety net for emergency expenses.