Savings vs Investment – What’s More Important?

Tamilini Akka: Hello, Parkavi! How are you?

Parkavi: Hello, Tamilini Akka! I'm doing well. How are you?

Tamilini Akka: I'm doing well too. Recently, when I was talking to Akshita, she mentioned savings and investments.

Parkavi: Okay! So, what's the matter now, Akka? I couldn't quite understand it. Could you explain it clearly?

Tamilini Akka: Both investments and savings are important, but there are many differences between the two. Let's first look at savings.

What is Savings?

Parkavi: Sure, what does savings mean?

Tamilini Akka: Savings is like putting aside money from your earnings without spending it, just like putting it in a piggy bank. Here, the piggy bank is like a bank. When you need money urgently, these savings will help. It fulfills short-term needs. It's like growing a plant inside your house.

What is Investment?

Parkavi: I understand! So, what about investments?

Tamilini Akka: Investments are like doubling or increasing the money you've earned. It's like growing a tree outside your house. There’s a mention of this in the channel's description.

Tamilini Akka: Parkavi, you mentioned that there's risk in investments.

Parkavi: Yes, Akka! There's risk in investments, but it varies depending on the type of investment you choose. Buying land, purchasing stocks, mutual funds, government bonds – all these come with risks, Akka.

Tamilini Akka: So, savings don't offer growth, but they meet immediate needs. Whereas investments can lead to significant growth, is that right?

Parkavi: Exactly! You've understood it very well! I’ve also been watching Parkavi Finance videos.

Tamilini Akka: Akka, can I ask you something?

Parkavi: Sure, what is it?

Tamilini Akka: Name three creatures that lay eggs.

Parkavi: Chicken, lizard, duck.

Tamilini Akka: Oh no… that's not it…

Parkavi: Math teacher, English teacher, Chemistry teacher.

Importance of Both Savings and Investment

Tamilini Akka: What are you saying? Anyway, let me get to the important point. Savings have high liquidity, like a plant. Investments have low liquidity, but they are like a tree.

Parkavi: Thanks, Tamilini Akka! Now I understand how important both investments and savings are!

Tamilini Akka: I'm glad you understood, Parkavi. There will be more finance-related videos like this on the channel, so don't forget to subscribe to stay informed!

Which Should You Choose?

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