Your friend says, “I have some extra money, but I’m not sure if I should save or invest it.” What key questions would you ask your friend to help them figure out what to do?

Explanation:

1. Are you a risk taker?

In the investing world, the expected return that you get tends to come at corresponding with level of risk while saving provides almost at no return but have a lowest level of risk.

Of your friend say yes, let invest in somthing.

2. How old are you?

Age has a great influcen on a person's decision. If your friend are at middle age or above that age, he tends to prefer havving a safty solution. So saving may be the better option in both. On contrary, he should invest in something if he is still young.

3. Do you have any plans in short term that needs money?

Saving is the process of putting cold, hard cash aside so it can be used in the short-term, while investing is the process of putting money to work over a long term and holding or buying assets that will grow from compouded interest.

If he says yes, so let choose saving because this type has a higher liquidity

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.