Investing is a financial action that’s taken with the goal of making a profit. In this case, interest makes you money, and the higher the rate, the greater the return. The earlier you start investing, the more time your money has to grow.
Watch the video to learn about Getting Started with Investing, then test your knowledge at the end of the lesson.
Why is using a basic savings account not as effective as investing your money?
A. Savings accounts expire after a period of time
B. Investing boosts your credit score
C. Investing your money increases your net worth
D. Investing generally has a higher rate of return
As you compare basic investment tools, you want to have a high rate of return that compounds as often as possible.
A. True
B. False
Before you begin investing your money, you should build your emergency savings fund to cover:
A. 2 to 3 weeks of expenses
B. 1 to 2 months of expenses
C. 3 to 6 months of expenses
D. 1 year of expenses