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Risk and Return
Bigger possible gains usually come with bigger possible losses. There is no free lunch in finance.
Example
A bank savings account might pay you 3% a year, almost guaranteed. A single stock might gain 30% one year and lose 30% the next. The second one offers a higher possible return, and is also where you can lose real money.
How it fits in
If something promises a high, certain return, the risk is hiding somewhere, often in liquidity, fraud, or hidden fees. Real investments quote a range of plausible outcomes, not a single number. Understanding the worst plausible year counts more than the average year, because that is the year that decides whether you can hold on long enough to earn the average.
Where this is taught
Practise it on the platform
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.