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CSS Sass Basics (retired) Advanced Sass Concepts Interpolation and if/else Loops

When to use interpolation #{$} and when to use variables $

Hey, so I'm confused when you should use interpolation and when variables. When should each be used?

For example, we'll use a variable for color:

$color: white;

div {
color: $color;

But then for the class name in this video (and in the next video with loops) we use interpolation: