What is short-term savings and how does it differ from long-term savings?

Shortterm savings are funds that are set aside for immediate or nearterm expenses, typically within a period of one year or less. This can include things like an emergency fund, saving for a vacation or a down payment on a car, or building up savings for an upcoming event or expense.

On the other hand, longterm savings are focused on saving for expenses or goals that are further out in the future, typically more than one year away. Examples of longterm savings goals include saving for retirement, a child's education, or a major purchase such as a house.

The main difference between shortterm and longterm savings is the timeline for achieving those goals and the type of investment strategies used to achieve them. Shortterm savings typically require more liquidity and stability in the investment, while longterm savings may be able to take on more risk in order to potentially earn higher returns over a longer period of time.