Investing Basics

What Is Investing and Why Does It Matter? 

Investing means using your money to buy things that can grow in value over time, like stocks, bonds, or mutual funds. The goal is to build wealth and help your money work for you, instead of just sitting in a savings account. 

Investing matters because:

• Savings alone won’t keep up with inflation. Over time, prices rise. If your money isn’t growing, it’s slowly losing buying power.

• It’s how you build long-term wealth. Whether it’s for retirement, a house, or future goals, investing helps you reach them faster.

• The earlier you start, the more time your money has to grow. Thanks to compound interest, even small amounts invested regularly can grow into substantial wealth.

How do you start to invest?

For the average U.S. adult there are two main things they need to understand to start investing.

• How compound interest is used to create wealth

• Different types of investment accounts and strategies