What is the difference between saving and investing?

Saving means setting aside money in a safe, accessible place like a bank account or savings account, where it earns little to no return but remains protected and liquid. The goal is typically short-term security or building an emergency fund. Investing means putting money into assets like stocks, bonds, real estate, or mutual funds with the expectation of generating a higher return over time. Investing carries more risk since the value can go up or down, but it offers greater potential for wealth growth over the long term. The key tradeoff is that saving prioritizes safety and accessibility, while investing prioritizes growth and accepts some level of risk in exchange for potentially higher returns.