Youth and financial literacy: keys to reserves and investments.
It is important for young people to understand the difference between reserves and investments in order to make informed financial decisions. Reserves are savings that should be kept in a safe place, such as a bank account or safe deposit box. This money is intended to cover unexpected expenses or large purchases, and its value usually remains stable due to low interest rates.
Capital investments, on the other hand, represent investments in various assets for the purpose of earning a profit or increasing capital. They are used to achieve financial goals such as buying real estate or getting an education. However, investing involves the risk of loss due to market fluctuations, but this risk can be minimized by allocating your assets to different areas. It is important to realize that reserves provide short-term financial stability while investments help in achieving long-term goals.
