Why is Saving When You're Young Important?

Half of American adults started 2022 with a desire to boost their savings. This intention is easier for those who developed good savings habits at a young age. 

Kids who get used to regularly depositing some allowance funds in their piggy bank won’t think twice about setting money aside when higher wages and expenses enter the picture later in life.  

AND... you can't ignore the power of compound interest and getting started early!

IF YOU DEPOSIT $1 A DAY AND INVEST IT FOR AN ANNUAL COMPOUND 8% INTEREST RATE:

If you start saving at the age of 5

– End-of-year amount deposited: $365.00 – Amount returned: $0.00 – Total end-of-year wealth: $365.00 

By age 16 (11 years of savings)

– End-of-year amount deposited: $4,380.00 – Amount returned: $2,546.65 – Total end-of-year wealth: $6,926.65

By age 100 (95 years of savings)

– End-of-year amount deposited: $35,040.00 – Amount returned: $7,337,459.00 – Total end-of-year wealth: $7,372,499.00

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